The Ontario Energy Board (OEB) has approved new natural gas prices for Enbridge Gas Inc. (Enbridge) to take effect January 1, 2023.
The Quarterly Rate Adjustment Mechanism (QRAM) is the process by which the OEB adjusts the prices that natural gas customers pay for the natural gas that they use and to reflect changes in natural gas market prices.
These price changes are approved to take effect on the 1st of the month in January, April, July, and October each year.
The OEB does not allow distributors to earn a profit on the sale of natural gas, regardless of market fluctuations in price.
Other Rate Changes
The OEB also sets rates that natural gas utilities can charge for the delivery and storage of natural gas.
Any changes to those rates that are approved by the OEB between QRAM decisions also take effect on the first day of the next calendar quarter.
Reasons for Changes to Natural Gas Bills
QRAM
Several factors give rise to the change in natural gas prices approved for Enbridge and EPCOR’s QRAM for the January 1 to March 31 period including:
- Warmer than normal weather in the early winter period
- An increase in North American natural gas production
- Natural gas storage inventories are approaching the 5-year average
- A decline in North American Liquid Natural Gas exports
Total Annual Bill Impact
As noted in Table 1, beginning January 1, 2023, the total annual bill impact* for residential customers using a typical amount of natural gas in each rate zone will be:
| Rate Zone and Typical Annual Usage for a Residential Customer | Enbridge Gas Distribution 2,400 m3 |
Union South 2,200 m3 |
Union North East 2,200 m3 |
Union North West 2,200 m3 |
EPCOR Aylmer 1,780 m3 |
EPCOR South Bruce 2,149 m3 |
|---|---|---|---|---|---|---|
| Total Annual Bill (Current) | $1,591.81 | $1,438.92 | $1,736.79 | $1,545.67 | $1,222.32 | $1,946.81 |
| Total Annual Bill (Beginning Jan 1, 2023) | $1,477.88 | $1,384.54 | $1,675.95 | $1,385.34 | $1,192.46 | $1,832.83 |
| Total Annual Bill Impact | -$113.92 | -$54.38 | -$60.84 | -$160.33 | -$29.86 | -$113.98 |
| Percentage Change | -7.2% | -3.8% | -3.5% | -10.4% | -2.4% | -5.9% |
Other Rate Changes
Other changes taking effect on January 1, 2023 and included in Table 1 above are rate changes and temporary rate adjustments previously approved by the OEB in:
- Enbridge’s application for 2023 rates
The bill impacts include the implementation of new distribution rates for 2023 as approved by the OEB, which are an increase in the range of $20.97 to $36.99 annually depending on the rate zone. - Enbridge’s application for approval of the disposition of its 2021 Deferral and Variance Accounts and for review of its 2021 Earnings Sharing amount
These temporary rate adjustments are credits or costs that have been approved for refund or recovery from customers on a one-time basis. The adjustments range between a credit of $18 and a charge of $9 depending on the rate zone. - EPCOR Aylmer’s application for 2023 rates
For Aylmer customers, this results in a bill decrease of approximately $6. - EPCOR South Bruce’s application for 2023 rates
For South Bruce customers, this results in a bill increase of approximately $12.
Temporary rate adjustments are credits or costs that have been approved for refund or recovery from customers over a temporary period.
About the QRAM
Natural gas is a commodity that is bought and sold on North American energy markets. At any given time, its price fluctuates based on a variety of factors including supply and demand, seasonal changes, levels of stored natural gas, and major weather events. Enbridge and EPCOR update their forecast of market prices every three months and use that forecast to seek the OEB’s approval of their proposed changes to natural gas commodity prices. These proposed changes cover:
- Future costs: This is based on a forecast of market prices for natural gas over the next 12-month period.
- Past costs: This is based on the difference between what the utility previously forecast that their customers would pay and what their customers actually paid. This kind of adjustment is needed because the gas prices charged to customers are based on forecasts, which are never exact. This may be called the Gas Price Adjustment or Cost Adjustment on your bill. It can increase or lower the rate accordingly. For example, if a utility collected more from customers than it paid for gas in the past, the difference is credited back to customers through a lower rate. Likewise, if not enough was collected by the utility, the rate will be higher.
The OEB does not allow utilities to earn a profit on the sale of gas, regardless of market fluctuations in price.
Additional Information and Resources
- Understanding your natural gas bill
- Find out about natural gas rates for supply, and why they vary throughout the year.
- Approached by a retailer? Before you enter into an energy contract for natural gas, be sure to do your homework.
Programs to Support Natural Gas Customers
A number of programs are available to support energy consumers.
- Low-income Energy Assistance Program (LEAP)
This program provides a grant towards a customer’s electricity and/or natural gas bill if they’re behind on their bill and may face having their service shut off. It is for emergency situations. See OEB.ca/BillHelp - Rules to protect low-income customers
Electricity utilities, unit sub-meter providers and rate-regulated natural gas utilities follow customer service rules specific to low-income customers. These include waiving security deposits and allowing longer payment times under arrears payment plans. See OEB.ca/BillHelp - Enbridge – To help Enbridge consumers save energy and lower their natural gas bill, Enbridge offers rebates for energy-efficiency upgrades and free upgrades for income-qualified homes.
About the OEB
The OEB is the independent regulator of Ontario’s electricity and natural gas sectors. It protects the interests of consumers and supports the collective advancement of the people of Ontario. Its goal is to deliver public value through prudent regulation and independent adjudicative decision-making which contributes to Ontario’s economic, social and environmental development.
Contact Us
Media Inquiries
Phone: 416-544-5171
Email: oebmedia@oeb.ca
Consumer Inquiries
416-314-2455/1-877-632-2727