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

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 natural gas is used. The cost of using Enbridge Gas New Brunswick’s distribution network for residential customers to have natural gas delivered is broken into the Customer Charge and the Delivery Rate. 

Rate Class Customer Charge
($ / month)
Delivery Rates
($ / GJ)
Small General Service 18.00 9.4450

The approved distribution delivery rate for residential customers, effective January 1st, 2017, 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.

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

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.

Your total annual cost will depend on how much natural gas you use and what the actual cost of natural gas supply will be, but here’s an example:

If you are a typical residential customer who uses 81 GJs per year for heat and hot water and buys your gas supply from Enbridge (Enbridge Utility Gas), your total annual cost would be $1,673.

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

Frequently Asked Questions: 2017 Rates & Charges

What is changing in 2017?

The approved distribution delivery rate for residential customers, effective January 1st, 2017 is $9.4450/GJ and will be in place for at least one year.

Remember: the distribution 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.

The total cost of natural gas remains stable. Check out the average total cost of natural gas ($/GJ) for residential customers for the last 3 years:

Will the adjustment impact me and other residential customers?

The actual impact on your total annual cost (including distribution and commodity charges) will depend on how much natural gas you use and what the actual cost of natural gas supply will be in 2017, but here’s an example:

If you are a typical residential customer who uses 81 GJs per year for heat and hot water and buys gas supply from Enbridge (Enbridge Utility Gas), your total annual cost would be $1,673 (including distribution and commodity charges).[1]

You may see a total annual bill increase of about 0.7% - that’s approximately $20 over the course of the year, compared to what we forecasted for the total annual cost in 2016.

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 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 larger savings against other sources 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, click here.           

I keep hearing about “rates going up” year over year – am I REALLY saving?

Yes you are saving! You are saving compared to electricity, 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.

Homeowners can still expect to see 20% savings in 2017 compared to electricity, and even more if the cost of commodity is lower than expected. If electricity was measured in GJs, the total price of residential electricity would be $29.44/GJ in January 2017, compared to $17.90/GJ for natural gas.

To talk more about your historical savings, contact us! (1-800-994-2762.)

Why do we 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.

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 as part of an open and transparent regulatory process.

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

Costs to operate and serve the approximately 12,000 customers are decreasing for the third year in a row. This has been achieved through prudent management of costs. Controlling and reducing expenses have resulted in rate reductions and rate stability for Enbridge’s customers. Enbridge expects this trend to continue.

We also work with the NB 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.

If you were using electricity to heat your home and hot water, you would be paying 20% more annually on average.

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

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.

I heard there is a “rate cap of 3%” until 2019. What does that mean?

The proposed changes to the Gas Distribution Act cap the variable portion of the distribution rate for residential customers to 3% for 2018 and 2019. But the total cost of gas for those years could actually reduce year over year! The total cost of natural gas includes the forecasted cost of natural gas commodity and a target of 20% annual savings compared to the NB Power residential electricity rate.

All adjustments to distribution rates and charges for all rate classes are reviewed and approved by the NB Energy and Utilities Board an annual basis through an open and transparent regulatory process.

The changes to the Gas Distribution Act also give more authority to the independent regulator – the NB Energy and Utilities Board. For 2020 and beyond, we can all take confidence in the Board’s expertise and the open and transparent public regulatory process to make sure customers are paying just and reasonable rates. It’s in our best interest to ensure customers are experiencing savings and a fair price for natural gas too in order to continue to grow the number of customers and reduce distribution rates for everyone!  

What’s up with Enbridge and the agreement with the government?

On November 4th, the Government of New Brunswick and EGNB announced an agreement to settle the lawsuits. Enbridge agreed to drop the lawsuits and the Government agreed to make adjustments to the Gas Distribution Act. These changes put the regulatory power back into the hands of the New Brunswick Energy and Utilities Board and give Enbridge a fair regulatory environment not only to operate, but to grow and invest. The Government also agreed to extend Enbridge’s Franchise Agreement to operate and grow the natural gas distribution utility in the province for another 25 year renewable term (50 years). On December 16th, 2016, the Government officially passed legislation. 

Click here for information on the 2017 Approved distribution Rates and Charges for ALL rate classes.

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[1] Based on the forecasted average Enbridge Utility Gas price of $8.8206/GJ for 2017 at the time of filing.

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. Residential customers who typically use natural gas for heat and hot water are placed in the Small General Service (SGS) Rate Class.

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 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.)

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

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 you use.

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 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 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.

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).