Frequently Asked Questions
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Answers about everything else
How are gas charges calculated?
Of the three parts of a typical natural gas bill (commodity, pipeline transmission, and distribution), the commodity price is not regulated, while pipeline and distribution rates are regulated. Commodity prices are determined by the interaction of natural gas supply and demand. Natural gas prices rise and fall every day with changing supply and demand. Important natural gas markets and pricing points in Canada are the intra-Alberta market, and the Dawn, Ont., market hub.
Pipeline transmission and distribution rates are regulated, with rates based on the cost of providing services. Pipeline rates are typically regulated by the Canada Energy Regulator (CER, formerly the National Energy Board), and local distribution rates are regulated by provincial authorities.
Visit the NATURAL RESOURCES CANADA website for details