Then they store the supply until winter and deliver it when you need it to heat your home or business. Most utilities buy what they think they’ll need, based on forecasts, during the summer when the price is cheaper. Because natural gas is a main source of heating in North America, it is usually more expensive in the winter months. Time of year is another factor affecting costs. We adjust supply rates periodically throughout the year so there’s less likelihood you or the utility will owe a large amount at a given time.Ĭurrent applications How are rates affected by a change in the seasons? Likewise, if not enough was collected by the utility, the rate will be higher.īecause forecasting is done so far in advance of when utilities actually purchase natural gas, it is never exact. 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. It can increase or lower the rate accordingly. This may be called the Gas Price Adjustment or Cost Adjustment on your bill. Past costs.Utilities also review the difference between what they previously forecast their customers would pay and what their customers actually paid.Then they estimate the market price for natural gas over the next 12-month period. Utilities estimate how much gas they expect their customers to use, based on previous years. They must pass through to you the price they pay to buy natural gas on the open market, with no markup.Įvery 3 months, natural gas utilities ask us to adjust their supply rates to cover:
We don’t allow Enbridge and EPCOR to earn a profit on the sale of gas. Major weather events can also affect the market price. Market prices rise and fall based on current supply and demand. Natural gas is a commodity that is traded on North American markets. We set rates for the natural gas that you use (supply) 4 times a year. View past natural gas rates How often does the Ontario Energy Board set new rates?
To see how these natural gas rates relate to your overall bill, visit our natural gas bill calculator. ** The rate for EPCOR includes storage and transportation charges. * The rate for Union South includes transportation charges.
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