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.
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 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.
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.
Your total annual cost will depend on how much more natural gas is used, but here is an example:
If you are a typical residential customer who uses Liberty Utility Gas, your total annual cost would be $1,561.
Proposed 2023 Natural Gas Distribution Rates & Charges Q&A
Overview:
On March 3, 2023, Liberty submitted an application to the New Brunswick Energy and Utilities Board (NBEUB) that includes adjustments to the distribution rates for all customer rate classes in 2023. The proposed changes would result in reductions in the total cost of natural gas for all customers. Pending approval from the NBEUB, these new rates would take effect on July 1, 2023.
Liberty is also proposing the adoption of a full Revenue Decoupling Mechanism (“RDM”) for all rate classes, excluding Large Industrial Contract Service (LICS) and Off-Peak Service (OPS) rate classes. Decoupling removes the impact of variations in volumes for reasons that are generally outside the control of a utility’s management. In particular, impacts from weather are mitigated.
When would the Distribution Rates and Charges take effect?
Liberty is seeking to implement the adjustments to distribution rates on July 1, 2023, pending approval from the NBEUB.
If the adjustments are approved, how will customers be affected?
The actual impact on customers’ total annual bills will depend on rate class, how much natural gas is consumed and the actual cost of natural gas supply in 2023.
Here is a quick look at the impact the proposed changes would have on a typical customer in each rate class, if approved by the NBEUB:
Total Annual Cost of Natural Gas: 2022 Current Rates vs. Proposed 2023 Rates
Customer Profile
(Annual GJs)
Total Cost
Current 2022 Rates ($)
Total Cost Proposed 2023 Rates ($)
% Change
Forecasted % Savings in 2023
Small General Service (Residential)
64 GJs
$1,658.77
$1,610.36
-2.9%
12.2%
Mid-General Service (Small Commercial)
334 GJs
$8,208.78
$7,936.99
-3.3%
38.5%
Large General Service (Medium Commercial)
3,777 GJs
$77,473.00
$72,586.21
-6.3%
49.4%
Contract General Service (Large Commercial)
9,546 GJs
$172,365.75
$164,637.51
-4.5%
44.0%
Industrial Contract Service (Industrial / Institutional)
154,862 GJs
$2,405,332.96
$2,235,718.33
-7.1%
52.5%
Off-Peak Service
1,194 GJs
$23,423.64
$19,289.31
-17.7%
55.5%
Based on the current and proposed distribution rates/charges and the average current/forecasted Liberty Utility Gas price in 2023 of $10.65/GJ and in 2022 of $11.60/GJ. Forecasted % Savings in 2023 is total cost compared to electricity for residential and No. 2 oil for commercial.
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 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. To see historical Liberty 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.
If approved, how would 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 Rate (LGS) Classes.
Liberty is proposing to lower the distribution rates for all commercial customers, which would result in decreases of 3.3-17.7% (depending on rate class) in total cost of natural gas in 2023, as compared to 2022.
If approved, how would the changes impact residential customers?
Liberty is proposing to increase the distribution rate for residential customers from $10.42 to $10.85 but when taking the lower commodity price into account, residential customers would see a decrease of 2.9% in their total cost of natural gas in 2023 as compared to 2022.
A typical residential customer, for example, who buys their gas supply from Liberty (Liberty Utility Gas) and uses 64 GJ per year for heat and hot water would see a total annual bill decrease of approximately $48.41 over the course of the year, compared to 2022.
How are distribution rates and charges calculated?
Distribution rates and charges are calculated based on the costs to provide distribution services to each rate class.
The proposed adjustment to the residential distribution rate brings the price more in line with what it costs the utility to deliver natural gas to residential customers. The proposed distribution rates continue to be set to remain competitive in the marketplace.
How does natural gas compare to the cost of the other energy sources?
Residential customers can still expect to see savings compared to electricity – an estimated 12% savings and even more if the cost of natural gas supply is lower than expected.
Commercial customers can expect to see 39%-53% savings compared to No. 2 oil and even greater savings if the cost of natural gas supply is lower than expected.
What is the process for approving and implementing the rates?
All adjustments to distribution rates and charges for all rate classes are reviewed and approved by the New Brunswick Energy and Utilities Board.
To learn more about the regulatory process, visit www.nbeub.ca.
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.
For a list of contact information for New Brunswick's licensed gas marketers, click here .
Federal Carbon Charge
Starting July 1, 2023, the Government of New Brunswick will eliminate its own provincial carbon charge and allow the federal government to impose its version. The Federal Government will be applying its 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.
New Brunswickers will receive their first rebate in October. The first rebate will be double the normal amount - $368 for a family of four and $184 for a single adult - to cover the carbon tax revenue collected since July.
Key Questions & Answers
What is it?
The Government of Canada’s carbon pollution pricing system, commonly referred to as a “carbon tax”, will be applied to fossil fuels including natural gas consumed by Liberty customers in New Brunswick beginning 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 carbon charge is $65 on each tonne of CO2 emitted by burning fossil fuels, such as natural gas. To comply with federal regulations, Liberty will charge $3.32 per GJ of natural gas. This amounts to an additional $212.48 annually for the average New Brunswick residential customer (based on $3.32 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.
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.
Starting in October 2023, the federal government will deliver CAI payments to individuals on a quarterly basis, as 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 is expected to be $736 ($184 quarterly).
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 $3.32 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.
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:
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.
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).
