Natural Gas Prices Explained

Enbridge Gas buys natural gas at a number of market supply hubs in Western Canada and the U.S. We pay market prices for natural gas and then pay other pipeline companies to transport the gas from supply hubs into our distribution system in Ontario. We adjust the rates we charge our customers for these items quarterly to reflect changes in market prices, which are passed through to our customers without mark-up. In addition, there are adjustments for the difference between our forecast costs and the actual costs from prior periods.

By buying gas at different times throughout the year and using a variety of contract lengths, we help reduce the impact of market price changes for our customers.

You’ll see two general types of natural gas rate changes during the calendar year. The first type occurs quarterly, on the first of January, April, July and October, to reflect changes in what Enbridge Gas expects to pay for gas commodity and transportation services (getting gas to you), as well as differences between forecast and actual costs for prior periods. This is shown as a change in the gas commodity and transportation rates on your bill and may also appear as a small change in delivery rates as Enbridge Gas also uses natural gas to power our delivery system. These changes, which are passed through to you without mark-up, help ensure that you’re billed at a rate that closely reflects the expected market price of gas.

The second type of rate change occurs annually and reflects the overall costs to run a safe and reliable natural gas distribution system. This may include a change in the delivery or storage rates, or the customer charge, depending on your location.

In addition, as part of the federal government's carbon pricing program, a carbon charge applies to fossil fuels sold in Ontario, including natural gas. The federal carbon charge increases annually each April.

We take every step possible to keep energy affordable. You pay what we pay—we pass the costs to buy natural gas from the market onto you without marking up the price. We also offer various programs to help you lower your energy use and budget your payments. Relief plans are also available to eligible customers.