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Rates & Charges

Your total cost of natural gas includes the cost of natural gas supply itself and the cost of distribution. 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, which is multiplied by how much you consume in the month.

As a regulated public gas distribution utility, Liberty submits applications that are being 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 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 commodity of natural gas in the future, but they may affect the amount of savings. If the commodity goes up, your savings compared to last year and alternative energy may be lower, and your savings may be greater.

The  Liberty Utilities Handbook of Rates and Distribution Services includes a glossary of terms and conditions of the Rules & Regulations and the Terms & Conditions.

Current Natural Gas Distribution Rates & Charges

The cost of using Liberty'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.

Residential customers who typically use gas for heat and hot water are placed in the Small General Service (SGS) Rate Class. The following rates and charges are effective as of January 1, 2025

SGS RATES & TARIFFS*

 
Monthly Distribution Customer Charge ($ per Month) 22.50
Monthly Distribution Delivery Charge ($ per GJ):
For all volumes delivered
11.2378

Click here for the Distribution Rates & Charges for all other rate classes.

2024 Rates & Charges Q&A

Overview

On December 31, 2024, the New Brunswick Energy and Utilities Board (EUB) approved the 2024 distribution rates and charges for all Liberty customer rate classes. The approved changes result in decreases in the total cost of natural gas for all customers compared to 2023 rates. Total cost is made up of the cost of the natural gas supply (referred to as the “Commodity Charge” on your bill), the cost of distribution, and the Federal Carbon Charge. The adjustments to distribution rates and charges took effect January 1, 2025, and will be in place until the 2025 rates are approved by the EUB.

The EUB also approved Liberty’s proposal for a Weather Normalization Adjustment (WNA) for the Small General Service (SGS) Rate Class, which mitigates the impact abnormal weather has on gas consumption. Under a WNA, revenue will not be affected by customer usage that varies due to abnormal weather. As a result, starting February 1, 2025, SGS customers will see a new line item on their bill called "Weather Normalization adj."

Key Questions & Answers

How will customers be affected?

The actual impact on customers’ total annual bills will depend on rate class, how much natural gas is consumed and the actual cost of natural gas supply.

Here is a quick look at the impact of the distribution rate adjustments on each rate class:

2023 Total Cost vs. 2024 Total Cost*

 

Customer Profile

(Annual GJs)

2023 Total Cost ($) 2024 Total Cost ($) % Change
Small General Service (SGS) 66 1,838.39 1,718.44 -6.52
Mid General Service (MGS) 408 9,968.62 9,118.52 -8.53

Large General Service (LGS)

4,247 89,739.39 80,931.77 -9.81
Contract General Service (CGS) 10,941 206,958.17 183,492.92 -11.18
Industrial Contract General Service (ICGS) 179,873 2,876,344.57 2,507,302.68 -12.83
Off-Peak Service (OPS) 1,126 N/A N/A N/A

*Based on the approved 2023/2024 distribution rates/charges and the average actual/forecasted Liberty Utility Gas (LUG) price in 2023 of $10.04/GJ and in 2024 of $7.18/GJ.

What if the 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, however, it will affect the amount of savings you will experience. If the commodity goes up, the total cost of natural gas compared to 2023 may be greater, and if the commodity goes down, the total cost of natural gas may be lower. 

To see historical Utility Gas pricing, click here.

NOTE: Liberty does not earn a profit on the sale of natural gas supply (Liberty Utility Gas). Customers have a choice when it comes to purchasing their natural gas supply. Please visit www.nbeub.ca for more information.

What is Weather Normalization Adjustment (WNA)?

A WNA separates a utility’s revenue from customer usage. The EUB determines a just and reasonable revenue level, based on the costs to run and maintain a safe and reliable gas system and to serve our customers. Under a WNA, Liberty’s revenue will not be affected by customer usage that varies due to abnormal weather.

For more information, click here.

How will the changes impact commercial customers?

Commercial customers include small to large sized businesses and organizations in the Mid-General Service (MGS) and Large General Service (LGS) Rate Classes.

The adjusted distribution rates for all commercial customers will mean decreases of 8.53% to 12.83% (depending on rate class) in the total cost of natural gas compared to 2023 rates.

For example: if a small business used 408 GJ of natural gas throughout the year for heat and hot water, their annual bill would be $850 less, compared to 2023 rates.

How will the changes impact residential customers?

For residential customers, the distribution rate increased from $10.8527/GJ to $11.2378/GJ. When you consider the total cost of natural gas homeowners will see a decrease of 6.52% compared to 2023 rates.

For example: A typical residential customer using 66 GJ per year for heat and hot water would see a total annual bill decrease of approximately $120 over the course of the year, compared to 2023 rates.

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.

What is the process for approving and implementing the rates?

Liberty submits every rate application to the EUB. All adjustments to distribution rates and charges for all rate classes are then reviewed and approved by the EUB through an open and transparent regulatory process.

To learn more about the regulatory process, visit www.nbeub.ca.

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

We work with the NBEUB 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.

What will happen to my rates beyond 2025?

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 to continue to grow the number of customers and reduce distribution rates for everyone.  

Liberty will continue to work with the EUB through the open and transparent public regulatory process to make sure customers are paying just and reasonable rates.

Why do we have to pay distribution charges at all?

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 (commodity).

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.

Why do we have to pay a Federal Carbon Charge on our bill?

To comply with federal regulations, Liberty is required to charge customers $4.09 per GJ of natural gas. This amounts to an additional $269.94 annually for the average New Brunswick residential customer (based on $4.09 per GJ plus HST). The Federal Carbon Charge increases annually each April 1. Click here to see the Federal Carbon Charge rates for natural gas for 2024-2030.

For individuals only, the impact of the carbon charge will be mitigated through the Government of Canada's tax-free Climate Action Incentive (CAI) payment. For an average New Brunswick family of four, the annual total of the quarterly CAI payments for 2025 is expected to be $736 ($184 quarterly).

Commercial customers are ineligible to receive CAI payments. The federal rebates will be only issued to individuals and families. Please visit the federal government website for more information.

Natural Gas Distribution Charge

The cost of using Liberty's distribution system has a number of features such as: customer charge, demand charge, and various types of delivery rate blocks. Your rates depend on which rate class you fit into. Residential customers who typically use gas for heat and hot water are placed in the Small General Service (SGS) Rate Class.

How are the distribution rates and charges determined?

Distribution rates & charges for all rates are reviewed by the New Brunswick Energy and Utilities Board  and are  part of an open and transparent regulatory process.

Why are distribution rates higher in New Brunswick?

Distribution rates in New Brunswick are generally 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 you use.

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 Energy and Utilities Board.

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 commodity of natural gas in the future, but they may affect the amount of savings. If the commodity goes up, your savings compared to last year and alternative energy may be lower, and your savings may be greater.

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

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

Weather Normalization Adjustment

In December 2024, the New Brunswick Energy and Utilities Board (EUB) approved Liberty’s proposal for a Weather Normalization Adjustment (WNA) for the Small General Service (SGS) rate class. A WNA mitigates the impact abnormal weather has on gas consumption. Under a WNA, Liberty’s revenue will not be affected by customer usage that varies due to abnormal weather. As a result, starting February 1, 2025, you will see a new line item on your bill called "Weather Normalization adj."

How Does It Work?

Weather Normalization Adjustment Explained


Key Questions & Answers

What is WNA?

A WNA separates a utility’s revenue from customer usage. The EUB determines a just and reasonable revenue level, based on the costs to run and maintain a safe and reliable gas system and to serve our customers. Under a WNA, Liberty’s revenue will not be affected by customer usage that varies due to abnormal weather.

Why did Liberty ask for a WNA?

This arrangement reduces weather-related risk, enabling Liberty to collect only the EUB-approved revenue level required to run and maintain a safe and reliable gas system – no more, no less.

Does this mean Liberty is guaranteed a profit regardless of how they manage their business?

No. The WNA does not mitigate risks that remain within Liberty’s control.

How does the WNA work?

Liberty uses several factors to determine the amount of revenue required to serve our customers and to run and maintain a safe and reliable gas system, including using historic trends based on weather. We know the typical amount of gas used during “normal” weather, but sometimes a month can be colder or warmer than normal. If a month is colder than normal, Liberty receives more revenue due to increased gas usage. If a month is warmer than normal, Liberty receives less revenue due to decreased gas usage.

With the weather normalization adjustment, Liberty will apply a credit or charge to customers’ bills to compensate for variations in gas usage due to weather. Liberty will calculate the difference between the typical (or normal) weather and the actual weather that occurred. We then apply a credit or a charge to customers’ bills so that the revenue collected aligns with our EUB-approved revenue level – no more, no less.

A WNA works by adjusting customer rates during the heating season to account for weather-related variances in usage: 

  • When weather is colder-than-normal, rates may be adjusted downward, or decreased, though the WNA to prevent a revenue level surplus; 
  • When weather is warmer-than-normal, rates may be adjusted upward, or increased, through the WNA to prevent a revenue level deficit 

What are the benefits of WNA?

How will this affect my bill?

During the heating season (October – May), you will see a new line item on your bill called the “Weather Normalization adj”. This line item will show a credit or charge on your bill to compensate for months that are colder or warmer than normal.

If the month is colder than normal, our customers will use more gas than expected. This means we will collect more revenue than required. The weather normalization adjustment would apply a credit based on volumetric usage to customers’ bills to refund that over collection.

If a month is warmer than normal, customers will use less gas than expected, and the company will fall short of its expected revenue. In this case, the Normal Weather Adjustment will show up as a charge based on volumetric usage on customers’ bills.

Adjustments will be clearly marked on your bill and will be capped at 20% of the unadjusted bill amount. . 

PLEASE NOTE: The Commodity Charge that appears on your bill is based on market pricing and will not be affected by weather normalization adjustment. Liberty purchases gas on the open energy market and passes those costs on to customers without a markup in price. Gas supply pricing can vary significantly. This is especially true when comparing summer to winter pricing.

How is “normal” defined?

Liberty sets rates based on “Normal” Weather – the average of the past 20 years. This means that “normal weather” changes from year-to-year, as the past year’s weather data is incorporated, and a new 20-year average is calculated.

“Normal usage” is based on individual customer history – up to a customer’s most recent 36 month average daily delivered gigajoules. If a customer does not have a sufficient billing history, the class average will be used until a customer has at least one qualifying year. 

Is my bill still based on how much gas I use?

Yes, you are still charged based on the number of gigajoules of gas you use.

Will my bill go up if I use less gas?

Customers will never pay more for distribution fees than what they would have paid under “normal” weather conditions. Using less gas also means you will be charged less in gas charges.

Is weather normalization adjustment a new concept?

This type of mechanism is in widespread use throughout multiple North American utility jurisdictions and is widely recognized as beneficial for both customers and utilities.

How are Liberty’s rates developed?

Like any business, Liberty incurs different types of costs to operate. To continue to provide a safe and reliable service to our customers, Liberty must recover these costs through the rates we charge for our services. 

Liberty incurs 3 different types of costs in its provision of services to customers: 

  1. Costs to build and maintain a safe infrastructure: this includes things like pipelines, meters, gate stations, system monitoring, etc. 
  2. Costs to support the system: including offices, employee salary and benefits, insurance, etc., and 
  3. Return on Investment: or the opportunity – not the guarantee – to earn a certain percentage of profit, which is regulated by the EUB.  

Together, these costs make up a fixed revenue level. This is the amount of annual revenue Liberty requires to ensure a safe & reliable gas distribution system.  

The revenue level is then divided by anticipated customer usage – or the amount of gas Liberty expects customers to use, measured in Gigajoules – to develop rates, which are designed to recover all the costs outlined above under normal weather conditions.  

In New Brunswick, gas usage by customers is predominantly determined by weather – for example, more gas is used in the winter because we need to heat our homes.  

To determine future usage, Liberty looks to historical usage. Rates are developed with "normal" or 20-year average weather in mind. Thus, deviations from this "normal" level change the amount of gas used, and therefore the revenue that Liberty can collect.  

Since historical usage is used to estimate future costs and rates, changes in usage due to abnormal weather can result in a difference between Liberty’s EUB-approved revenue level and the actual revenue collected.  

What is the WNA cap?

The 20% cap is calculated using the combined distribution and gas charges. To ensure fairness, customers who are not Liberty Utility Gas (“LUG”) customers will have their cap calculated using their distribution charges plus what their gas charge would have been had they been an LUG customer.  

Still have a question? We are happy to answer it!

Call 1-800-994-2762 (Monday through Friday between 8 a.m. and 5 p.m.) or email us .

Federal Carbon Charge

In July 2023, the Government of New Brunswick eliminated its own provincial carbon charge and allowed the federal government to impose its version. The Federal Government will be applying it's carbon charge and will be responsible for redistributing the collected revenues. Under the federal backstop, 90 per cent of the revenues collected by the federal government are returned to individuals through rebate cheques.

Key Questions & Answers

What is it?

The Government of Canada’s carbon pollution pricing system, commonly referred to as a “carbon tax”, was applied to fossil fuels including natural gas consumed by Liberty customers in New Brunswick on July 1, 2023.

Who receives the money from the carbon tax?

All the money Liberty collects from the carbon charge goes to the Government of Canada.

How will customers be affected?

The current carbon charge is $80 on each tonne of CO2 emitted by burning fossil fuels, such as natural gas. To comply with federal regulations, Liberty is charging $4.09 per GJ of natural gas. This amounts to an additional $261.76 annually for the average New Brunswick residential customer (based on $4.09 per GJ for 64 GJs plus HST). This charge increases annually each April. You can see how the price changes each year in the chart below.

2024-2030 Federal Carbon Charge Rates for Natural Gas

Year Carbon Tax ($/tonne) Natural Gas ($/m3) Natural Gas ($/GJ) Converted
2024 $80 0.1525 4.0885
2025 $95 0.1811 4.8552
2026 $110 0.2097 5.6220
2027 $125 0.2383 6.3887
2028 $140 0.2669 7.1555
2029 $155 0.2954 7.9196
2030 $170 0.3240 8.6863

Will I be reimbursed?

For individuals only, the impact of the carbon charge will be mitigated through the Government of Canada's tax-free Climate Action Incentive (CAI) payment.

In October 2023, the federal government issued CAI payments to individuals on a quarterly basis - four equal payments delivered at the beginning of each quarter. To receive a CAI payment, individuals need to file an annual tax return. For an average New Brunswick family of four, the annual total of the quarterly CAI payments for 2023 was $736 ($184 quarterly).

Commercial customers are not eligible to receive CAI payments. The federal rebates will be only issued to individuals and families. Please visit the federal government website for more information: https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/putting-price-on-carbon-pollution.html

Where is it on my bill?

The amount appears on your bill under the heading ‘Federal Carbon Charge’.

How long will the carbon charge be on my bill?

The carbon charge rate is set by the federal government. Liberty will continue to comply with legislation as long as it is in place.

How can I calculate my carbon charge?

The $4.09  per GJ charge is based on the $65/tonne rate and an established measure of the amount of carbon produced by burning a GJ of natural gas.

Contact our customer service team to estimate the potential cost impact of the carbon charge for you. (1-800-994-2762, CustomerCareNB@libertyutilities.com)

Energy efficiency ideas for your home or business to help reduce your carbon charge.

Click here for more information.

For a complete energy consumption and cost analysis for your home or business, please contact our Customer Service team. (1-800-994-2762, CustomerCareNB@libertyutilities.com)

Visit the federal government website for more information:

https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/putting-price-on-carbon-pollution.html

Natural Gas 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) but we are authorized to sell natural gas. 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.

Company Classification

Liberty

Liberty 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

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 tariffs are set out in the Liberty Handbook of Rates and Distribution Services (PDF).