Regulated Natural Gas Rates in Ontario

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Since 1992, all customers in Ontario have been able to choose their natural gas supplier in a competitive market. As is the case with the electricity market, regulated rate providers are a "default" option for natural gas supply. There are three regulated rate providers for natural gas in Ontario: Enbridge Inc., Union Gas Ltd, and Natural Resource Gas Ltd. Natural gas prices provided by your utility are regulated by the Ontario Energy Board (OEB). The OEB sets rates for the commodity price of natural gas, as well as for its transmission, distribution, and storage.

Rates Name Telephone
18.9887 cents/m3 Union Gas Limited 1-888-774-3111
18.3160 cents/m3 Enbridge Gas Distribution Inc 1-877-362-7434
23.7336 cents/m3 Natural Resource Gas Limited 519-773-5321

Rates are recent as of January 1, 2015. Source: OEB

How is the regulated rate determined?

Natural gas supply prices are intended to reflect the price for which they were bought on the spot market, with no markup. Prices are set by the OEB based on a 12 month forecast, and are revised after an application by the utility every three months (quarterly rate adjustment - QRAM). These quarterly rate adjustments reflect the difference between the predicted and actual price of gas, which utilities pass to consumers without a markup.

What are the advantages of of the regulated rate for natural gas?

The regulated rates are designed to follow market prices while ensuring a certain measure of price stability (in that they are adjusted every three months, and not every month). In some areas, consumers may only have one option for their natural gas supplier, as retailers may not be present in their area.

Why might I change to supply from a competitive retailer?

Competitive retailers are able to offer stable, multi-year prices for gas, which allow for greater protection from price volatility. Some competitive retailers also offer a discount on administration fees when you combine your electricity with your natural gas contract. Some will also offer additional benefits, such as Air Miles or other discounted services.

Is the regulated rate right for me?

The regulated natural gas rate might be right for you if:

  • You don't have a choice of your natural gas supplier
  • You do not want to enter into a contract for your energy supply

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