Rates & Charges

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 the natural gas to that rate class and how they use natural gas. For homeowners, the cost of distribution is broken into the flat monthly customer charge and the delivery rate, which is multiplied by how much gas you consume in the month.

As a regulated public gas distribution utility, Enbridge Gas New Brunswick submits applications on an annual basis that are reviewed and approved by the New Brunswick Energy and Utilities Board (EUB) as part of an open and transparent regulatory process.

Supply or “commodity” is the natural gas itself that you use. You can have Enbridge Gas New Brunswick, 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 commodity of natural gas throughout the year will not affect distribution rates and charges in place, but they may affect the amount of savings you will experience. If the commodity goes up, your savings compared to last year and alternative energies may be slightly lower and if the commodity goes down, your savings may be greater.

In 2016 for example, the cost of the supply of natural gas was lower than we forecasted, so you most likely experienced bigger savings!

The Enbridge Gas New Brunswick Handbook of Rates and Distribution Services includes a glossary of terms as well as the Rules & Regulations and the Terms & Conditions.

Current Natural Gas Distribution Rates & Charges

The cost of using Enbridge Gas New Brunswick’s distribution network to have natural gas delivered to you includes features such as: customer charge, demand charge, and various types of rate blocks. Your rates depend on which rate class you fit into. The following rate structure and associated rates and charges are effective as of January 1, 2018.

Customers are placed into one of the six regulated rate classes based on their monthly consumption patterns over the last 12 months.

Rate Class

Min Consumption (Monthly Demand Peak) Max Consumption (Monthly Demand Peak)

Customer Charge

($/month)

Demand Charge ($/GJ)

Delivery Rates

($/GJ)

Mid-General Service - < 250 GJ
  • For Customers with maximum consumption up to 60 GJs per month: 20.00
  • For Customers with maximum consumption greater than 60 GJs per month: 50.00
N/A
  • For the first 100 GJs delivered per month: 11.8805
  • For volumes delivered in excess of 100 GJs per month: 8.0820
Large General Service 250 GJ

-

  • For Customers with maximum consumption up to 650 GJs per month: 275.00
  • For Customers with maximum consumption greater than 650 GJs per month: 375.00
N/A
  • For the first 250 GJs delivered per month: 8.9005
  • For volumes delivered in excess of 250 GJs per month - between September 1 and April 30: 6.6526 - between May 1 and Aug 30: 2.5037

Contract General Service

1,000 GJ

<10,000 GJ N/A 19.00

For volumes delivered

  • between September 1 and April 30: 6.0235
  • between May 1 and August 31: 1.9066
Industrial Contract General Service 10,000 GJ - 3,300.00 25.56

For volumes delivered

  • between September 1 and April 30: 1.7298
  • between May 1 and Aug 30: 0.9375
Off-Peak N/A N/A 50.00 N/A

6.0207

For commercial customers, the calculation of distribution rates and charges is based on the cost of providing distribution services to each rate class.

The approved distribution rates and charges for all customers, effective January 1st, 2018, will be in place for at least one year.

As a regulated public gas distribution utility, Enbridge Gas New Brunswick submits applications on an annual basis that are reviewed and approved by the New Brunswick Energy and Utilities Board (EUB) as part of an open and transparent regulatory process.

Remember: the distribution charge is only one portion of your bill. Your total cost of natural gas includes the cost of the natural gas commodity itself and the cost of distribution.

Each customer’s total annual cost, including distribution and commodity charges, will depend on how much natural gas is consumed and what the actual cost of natural gas supply will be in 2017.

Click here for the Distribution Rates & Charges for residential customers.

Frequently Asked Questions: 2018-2019 Rates & Charges

Enbridge Gas New Brunswick submitted an application on July 19, 2017 for 2018 and 2019 distribution rates and charges for all customers.

Adjustments to distribution rates and charges for all rate classes are reviewed and approved by the New Brunswick Energy and Utilities Board through an open and transparent regulatory process.

The adjustments to distribution rates are based on legislation put forward by the Government of New Brunswick in December, 2016, that instructed the New Brunswick Energy and Utilities Board to approve a 3% annual increase in the variable distribution rate for residential customers and a rate freeze for all commercial distribution rates for 2018 and 2019.

Is anything changing in 2018 and 2019 for commercial customers?

For commercial customers in 2018 and 2019, there will be no adjustments to distribution rates.

However, the rate freeze only applies to the variable distribution rate on a commercial customer’s bill. A customer’s total cost of natural gas includes the cost of the natural gas commodity itself and the cost of distribution. So depending on how much natural gas is used and what the actual cost of natural gas commodity will be in 2018 and 2019, the total cost could even decrease, which is what we’re forecasting.

(Our 2018 and 2019 forecast average EUG price is low and stable: $8.32/GJ for 2018 and $7.78/GJ for 2019.)

Examples of TOTAL annual costs:

  • An average MGS commercial customer who buys their gas supply from Enbridge (Enbridge Utility Gas) and uses 528 GJ per year may see a total annual bill decrease of 2.1% in 2018 compared to 2017.[1] That is approximately $236 over the course of the year.
  • An average LGS commercial customer who buys their gas supply from Enbridge (Enbridge Utility Gas) and uses 4,400 GJ per year may see a total annual bill decrease of 3% in 2018 compared to 2017.3 That is approximately $2,249 over the course of the year.
  • An average CGS commercial customer who buys their gas supply from Enbridge (Enbridge Utility Gas) and uses 10,510 GJ per year may see a total annual bill decrease of 3.3% in 2018 compared to 2017.3 That is approximately $5,851 over the course of the year.

For a complete breakdown of all approved distribution rates & charges, please visit naturalgasnb.com.

Commercial customers: “Am I REALLY saving?”

As a commercial customer, you are saving compared to No.2 oil, and your overall annual cost of natural gas including distribution and commodity has remained very stable over the last number of years despite annual adjustments in distribution costs and monthly adjustments to commodity rates.

Check out the TOTAL price of natural gas ($/GJ) for commercial customers for the last 5 years compared to oil:[2]

MGS Commercial Customers:

 

LGS Commercial Customers:

 

CGS Commercial Customers:

To talk more about your historical savings, contact us at info@naturalgasnb.com or 1-800-994-2762.

I heard propane pricing was less expensive?

According to the estimated market average price of propane, natural gas is still less expensive, but there may be times when a customer is offered a lower price for propane for a limited time. All customers should beware of “too-good-to-be-true” claims. Often times, old rates are used to compare the cost of natural gas to propane, showing savings that don’t really exist. Be sure to get complete details before signing any contract.

Our account managers are ready to help you evaluate your energy costs, savings and consumption (and not just for natural gas!). To talk more about it, contact us at info@naturalgasnb.com or 1-800-994-2762.

What happens if the cost of natural gas commodity goes up or down?

Fluctuations in the price of the commodity of natural gas throughout the year will not affect distribution rates and charges in place.

But they may affect the amount of savings you will experience. If the commodity goes down, you will see bigger savings and if the commodity goes up, your savings compared to last year may be slightly lower.

In 2016 for example, the cost of the supply of natural gas was much lower than we forecasted, so you most likely experienced bigger savings than expected!

Note: Enbridge does not earn a profit on the sale of natural gas commodity (Enbridge Utility Gas).

To see historical Enbridge Utility Gas commodity pricing, please visit naturalgasnb.com.           

What is Enbridge doing to keep my bills low and manageable?

We work with the New Brunswick Energy and Utilities Board through an open and transparent regulatory process to make sure customers are not only paying a fair price for natural gas but are seeing savings compared to alternate energies.

Costs to operate and serve our 12,000 customers are decreasing for the fourth year in a row. This has been achieved through prudent management of costs. Controlling and reducing expenses have resulted rate stability for our customers and we expect this trend to continue.

So what will happen to my rates in 2020 and beyond?

Keeping natural gas rates low and stable is our priority. It’s in our best interest to ensure customers are experiencing savings and a fair price for natural gas in order to continue to grow the number of customers and reduce distribution rates for everyone.  

While the changes to the Gas Distribution Act dictate distribution rates for all customers for 2018 and 2019, they also give more authority to the independent regulator – the NB Energy and Utilities Board. That means for 2020 and beyond, we can all take confidence in its expertise and the open and transparent public regulatory process to make sure customers are paying just and reasonable rates.

Does Enbridge plan on expanding in NB and growing its customer base?

Yes, we plan to grow and expand our customer base in New Brunswick. In fact, growth of the utility is in the best interest of all – the utility and all customers – because it helps maintain low and stable rates. Enbridge is open to looking at new opportunities, but as a regulated utility, must go through a thorough review of any investment opportunity and obtain appropriate regulatory approvals.

Why is it more expensive here in New Brunswick compared to other provinces?

Distribution rates for natural gas in New Brunswick are higher than more mature jurisdictions across North America, like Ontario for example, because the costs to operate and maintain the distribution system here in this province are covered by a smaller number of customers. Mature markets have established distribution systems, some of which have been around for 160 years, and serve thousands to millions of customers.

 

[1] Based on the 2017 & 2018 forecast average Enbridge Utility Gas (EUG) rate, the 2017 approved Distribution Charges and the 2018 proposed Distribution Charges.

[2] Based on the Natural Resources Canada listed price of No. 2 oil, the forecast average Enbridge Utility Gas (EUG) prices at the time of filing, the 2017 approved distribution rates and charges and the proposed distribution rates and charges for 2018-2019.

Natural Gas Distribution Charge

The cost of using Enbridge Gas New Brunswick’s distribution network to have natural gas delivered to you includes features such as: customer charge, demand charge, and various types of delivery rate blocks. Your rates depend on which rate class you fit into. (Your rate class is based on your consumption.)

How long will the current distribution rates and charges be in place?

Distribution rates & charges for all rate classes are reviewed by the New Brunswick Energy and Utilities Board and are set on an annual basis, as part of an open and transparent regulatory process.

How are the distribution rates and charges determined?

Distribution rates and charges for all rate classes are reviewed and set on an annual basis, and may only be changed with the approval of the New Brunswick Energy and Utilities Board.

For commercial customers, delivery rates and charges are calculated based on the cost of providing distribution services to each rate class.

(For residential customers, the delivery rate is calculated based on a target 20% annual savings compared to the NB Power residential electricity rate and a forecast of the annual cost of natural gas supply – Enbridge Utility Gas.)

Why are distribution rates higher in New Brunswick?

Distribution rates in New Brunswick are typically higher than mature jurisdictions across North America because the costs associated with operating and maintaining the distribution system in this province are covered by a smaller number of customers. Mature markets have established distribution systems, some of which have been around for 160 years, and serve thousands to millions of customers.

Natural Gas Commodity Charge

The commodity charge is the cost of the natural gas supply that your company uses.

You and other natural gas customers have options for purchasing your natural gas supply. You can have Enbridge Gas New Brunswick, the regulated utility, supply your gas or you can sign a contract for gas supply with 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 pay to maximize price stability throughout the year.

But remember: the distribution is only one portion of your bill. Your total cost of natural gas includes the cost of the natural gas supply itself and the cost of distribution.

Fluctuations in the price of the commodity of natural gas throughout the year will not affect distribution rates and charges in place, but they may affect the amount of savings you will experience. If the commodity goes up, your savings compared to last year and alternative energies may be slightly lower and if the commodity goes down, your savings may be greater.

In 2016 for example, the cost of the supply of natural gas was lower than we forecasted, so you most likely experienced bigger savings!

Note: Enbridge does not earn a profit on the sale of natural gas supply (Enbridge Utility Gas). Click here for the Enbridge Utility Gas (EUG) Historical Commodity Rates.

For a list of contact information for New Brunswick’s licensed natural gas marketers, click here.

Natural Gas Suppliers and Marketers in New Brunswick

Natural Gas Marketers are unregulated companies that must be licensed by the New Brunswick Energy and Utilities Board (EUB) and can only offer to sell natural gas in the territory specified in their license. However, the Board does not regulate the prices charged or the terms and conditions of the Gas Marketer’s contracts. Enbridge Gas New Brunswick is not a licensed Gas Marketer (as we are instead, regulated by the EUB) but we are authorized to sell natural gas. As consumers, you have the responsibility to understand the terms and conditions of any contract you enter into and find out how the price you pay for natural gas will be determined as you are bound by those terms and conditions.

For example, a typical contract has a minimum term of one year or more. Find out how your gas supply will be priced, what protection you have if market prices of natural gas increase, and what benefit you will receive if market prices fall during the term your contract is in effect.

The following are all licensed natural gas suppliers. They are both sellers of gas and agents for sellers of gas.

Company Classification
Enbridge Gas New Brunswick
Enbridge Utility Gas
Seller of Gas
Irving Energy Services Limited Seller of Gas
Park Fuels Seller of Gas

Have questions about the commodity charge or how to purchase your gas supply? Contact us.

The New Brunswick Energy & Utilities Board - 1-866-766-2782

Handbook of Rates and Distribution Services

Enbridge Gas New Brunswick (“EGNB”) 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 EGNB’s Distribution System in the Province of New Brunswick.

In accordance with the Gas Distribution Act, 1999, EGNB is required to file with the Board schedules showing all rates and tariffs that the Board has approved for the Distribution Services that EGNB offers in the Province. These rates and tariffs are set out in the EGNB Handbook of Rates and Distribution Services (PDF).