Natural gas is an energy source that saves you money over the long term. But month to month, the savings may not be so obvious on your bill.
In New Brunswick, natural gas is provided in an "unbundled market" which means the cost of distributing natural gas is separated from the cost of supply.
Distribution rates and charges are the cost of operating the utility's distribution network, which is the pipeline system that distributes natural gas to you. Each rate class has a different set of rates and charges, based on how much it costs to deliver natural gas. For homeowners, the cost of distribution is broken into the flat monthly customer charge and the delivery rate,
Supply or "commodity" is the natural gas itself that you use. You may have Liberty, the regulated utility, supply your natural gas or you can sign a contract for gas supply with an independent Gas Marketer licensed by the New Brunswick Energy and Utilities Board.
Fluctuations in the price of the natural gas commodity in the future, but they can affect the amount of savings. If the commodity goes up, your savings can be greater, and your savings may be greater.
The cost of using customer charges, demand charges, and various types of rate blocks. Your rates depend on which rate you fit into. The following rate and structure are effective as of January 1, 2023.
For commercial customers, the calculation of distribution is based on the cost of supplying services to each class.
The effective distribution rates and charges for all customers, effective January 1, 2023.
As a regulated public gas distribution utility, Liberty Utilities submits applications are reviewed by the New Brunswick Energy and Utilities Board (EUB) as part of an open and transparent regulatory process.
Remember: the distribution is only one portion of your bill. Your total cost of natural gas includes the cost of natural gas and the cost of distribution.
Each customer's total annual cost, including distribution and commodity charges, will depend on the cost of natural gas.
The cost of using the Liberty's distribution network has the following characteristics: customer charge, demand charge, and various types of delivery rate blocks. Your rates depend on which rate you fit into. (Your rate is based on your consumption.)
How are the distribution rates and charges determined?
Distribution rates and charges for all rates are reviewed by the New Brunswick Energy and Utilities Board.
For commercial customers, delivery rates are based on the cost of supplying services to each class.
Why are distribution rates higher in New Brunswick?
Distribution rates in New Brunswick are higher than those of North America because of the costs associated with operating the system. Mature markets have established distribution systems, some of which have been around for 160 years, and many thousands of customers.
Natural Gas Commodity Charge
The commodity is the cost of the natural gas supply that your company uses.
You and other natural gas customers have options for your natural gas supply. You can have Liberty, the regulated utility, supply your gas or you can sign a gas contract for an independent gas marketer licensed by the New Brunswick EUB.
The price of natural gas in New Brunswick is based on market conditions in North America. The market price of natural gas, like any other commodity, can fluctuate during the year and from year to year. However, your gas supplier can take steps to stabilize the price you maximize throughout the year.
Remember, the distribution is only one portion of your bill. Your total cost of natural gas includes the cost of natural gas supply itself and the cost of distribution.
Fluctuations in the price of the natural gas commodity in the future, but they may affect the amount of savings. If the commodity goes up, your savings can be greater, and your savings may be greater.
On April 1st, 2020, the Government of New Brunswick (GNB) implemented its own Carbon Charge Plan replacing the Federal Carbon Charge Plan.
With the new Provincial Carbon Charge Program, GNB is supporting natural gas customers by giving the tax collected on carbon emitting products back to customers in the form of a bill credit: “Provincial investment in distribution system”.
Key Questions & Answers
What is the ‘Provincial investment in Distribution System’ credit?
On April 1, 2020, the Government of New Brunswick (GNB) is implementing its own Carbon Charge Plan replacing the Federal Carbon Plan. GNB will support natural gas customers by injecting $9M per year into the public natural gas distribution system run by Liberty.
Liberty will be giving the $9M back to our customers, as it represents the amount that Liberty will be collecting from our customers as part of the New Brunswick Carbon Charge Program: ‘NB Tax on carbon emitting products’.
Who receives the $9M per year that GNB will be injecting into the public natural gas distribution system?
Liberty will be collecting the $9M from GNB and will be giving it back to customers in the form of a credit on their bill equal to the amount of the NB Tax on carbon emitting products.
How will it affect me?
This will result in a $0 balance for the NB Tax on Carbon Emitting Products.
Where is it on my bill?
The credit will appear on your bill under ‘Other Charges’ with the heading ‘Provincial investment in Distribution System’.
Why is there still a Federal Carbon Charge on my bill?
On your April bill, you will still see the Federal Carbon Charge for the March portion of your consumption as well as the Provincial charge and credit. Liberty is required to remit the Federal Carbon Charge to the Federal Government for consumption in March.
As an example: If you are invoiced from March 15 to April 15 with a consumption of 100 cubic meters, the charges would appear as:
Federal Carbon Charge $1.96 (50 cubic meters @ $0.0391 – March portion)
NB Tax on Carbon emitting products $2.94 (50 cubic meters @ $0.0587 – April portion)
Provincial Investment in distribution system $-2.94
How long will the Carbon Charge be on my bill?
The carbon charge rate is set by GNB. Liberty will continue to comply with legislation as long as it is in place.
The carbon charge began in 2019 and will increase by $10/tonne each year for three years until it reaches a maximum amount of $50/tonne in 2021. The carbon charge amount to Liberty customers escalates over the following years to $2.63 per GJ as of April 1st, 2022. New Brunswick natural gas customers will be charged:
5.87 cents per m³ in April, 2020 (that's about $1.57 per GJ)
7.83 cents per m³ in April, 2021 (that's about $2.10 per GJ)
9.79 cents per m³ in April, 2022 (that's about $2.63 per GJ)
How long will the ‘Provincial investments in Distribution System’ credit be on my bill?
The Provincial investment in Distribution System credit will continue until further notice.
Customers who know their previous natural gas consumption can estimate the cost of the carbon load with the calculation of approximately $1.57 per GJ of natural gas delivered.
Natural Gas Suppliers and Marketers in New Brunswick
Natural Gas Marketers are licensed and licensed by the New Brunswick Energy and Utilities Board (EUB). However, the Board does not regulate the terms and conditions of the Gas Marketer's contracts. Liberty is not a licensed Gas Marketer (as we are instead, regulated by the EUB). As consumers, you have the responsibility to understand and understand the terms and conditions of your business.
For example, a typical contract has a minimum term of one year or more. Find out how to improve your energy supply, what you need to improve, and what benefits you will receive when you are in the market.
The following are all licensed natural gas suppliers. They are both sellers of gas and agents for sellers of gas.
Liberty is the holder of the General Franchise to distribute natural gas and provide Customer Services in the Province of New Brunswick. The purpose of the Rate Handbook is to define the various natural gas distribution rate classes and the associated rates and the scope and application of certain policies relating to the operation of Liberty’s Distribution System in the Province of New Brunswick.
In accordance with the Gas Distribution Act, 1999, Liberty is required to file with the Board schedules showing all rates and tariffs that the Board has approved for the Distribution Services that Liberty offers in the Province.These rates and rates are set out in the Handbook of Rates and Distribution Services (PDF).
