Union Gas (South) Natural Gas Residential Prices

Deregulated Natural Gas Prices 
Commodity prices in ¢/m³  

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MyRate Energy 22.4 21.9 transportation to Union Gas is 5.8 cents/m3 view offer or sign-up online

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Companies above are licensed by the Ontario Energy Board.

Transportation Note: Consider transportation costs in your cost comparison. Some gas marketers may add a transportation rate. We have posted the Transportation rate information for each of the marketers in the Features column above. Transport may be a fixed rate or a variable rate, changing each month. Union Gas on Jan 1, 2017 moved the transportation costs into the commodity rate and they removed the transportation rate that was in the southern Ontario regulated rates. Union Gas say that their Dawn Hub is within the Marcellas and Utica shale gas formations that extends south from Chatham, Ontario down through Pennsylvania and Ohio into West Virgina. Union stopped taking Alberta gas from the TransCanada Pipeline (TCPL) on Jan 1, 2017. The old Union South transport rate was mostly TCPL.

Union sets their gas prices quarterly, using price information from about 6 weeks before the start of the quarter. If the price they have to pay for the gas used in that quarter is different from their price, they have to recover or give back the difference.

They do this through a surcharge or credit spread over the following 3 to 12 months. These surcharges/credits apply only to those purchasing their gas from Union.

in the Features column above.

Questions? Go to our FAQs

If you have a business or a group of related business using more than 50,000 m3 per year:  deregulated natural gas for your business.

If you have been on a contract with a marketer that is coming to an end, make sure that you formally notify the marketer by responding to the renewal notice sent to you, or by sending a letter to the marketer! If you don't, you will likely be renewed automatically. More

Regulated Union Gas South Rates

Regulated Residential Rates based on 4,000 m³/ year
Rate type Gas Supply
Delivery Chg
South ON Res. 1st July 2021 - Rate M1 12.83 0.40 5.28 Incl. 18.51 $22.87 $1,014.90
Union Gas South rates approved effective: July 1, 2021

*Note: The Gas Supply Charge is what will change when you contract with a gas marketer. Gas marketers now have the option to control the charge for Transportation instead of allowing the utility to charge this item. Not all marketers have taken over this charge.

The Storage fee that appears on your Union bill has been added into the Delivery column.

The Adjust. column represents adjustments to the gas supply charge made by the utility (also known as a rate rider). It is usually due to the utility charging more or less than it cost them to buy the gas. This creates a surplus or deficit that has to be either paid back to customers, or collected as a surcharge.

Unlike fixed rates from a gas marketer, when you purchase gas from the utility the rate is subject to change at any time by the utility and can change retroactively in an annual balancing calculation. In the tables above the Estimated Bill is the total that a customer would pay over a full year for the volume shown. To see how your bill will change with a fixed rate from a gas marketer, select a rate from the table at top and insert this rate into the light blue box above.

Comparing and deciding among the various offers

There are 2 decisions. The first is whether to continue with the utility's variable rate, which changes every 3 months and may have retroactive charges, or a fixed term rate with a marketer of 1-5 years. You can choose to lock in for a long period at a fixed rate, or choose totally variable rates and take your chances that rates won't go up. This decision depends on your budget and what you expect gas prices to do over the next few years. You can see the utility's current rate in the chart above.

If you decide to go with a fixed price contract, your second decision is between marketers. Use our price chart to compare prices and features, and view the terms and conditions from each supplier.

Learn more about deregulated gas markets and marketers.

Regulated rates are not fixed rates, nor can they be

In Ontario, the Ontario Energy Board (OEB) regulates utility rates. When market prices go up, utilities apply to the OEB to change rates. This is for future rates, but can they can also apply to make a retroactive charge! They can't offer fixed contracts. When you sign up with an energy marketer, you can avoid these unexpected rate changes. As you can see from the previous chart, marketers can offer you an arrangement to fit your situation.

What's included in retail gas prices

If you choose to buy from a gas marketer, your gas delivery won't change. You will still get a bill from your distribution utility which will indicate a Delivery charge and a Transportation Charge (usually the responsibility of your utility) - about 1/3 of your bill that goes to the utility, and a Gas Supply Charge - the remaining 2/3 that goes to the competitive gas supplier you chose. If you have rental equipment or a service contract, these will appear as well. The transportation charge is set by the marketer in Union Gas South territory and can also be the responsibility of the marketer in the Enbridge territory, depending on your contract with the marketer.

Remember this split when comparing costs. Gas marketers offer rates on your Gas Supply charge, which is about 2/3 of your bill. Union Gas bills have four charges, as follows:

* Gas Supply is the charge that you compare with the rates from gas marketers. Transportation is a pipeline charge managed by all marketers in Union South, by the utility in the Union North and East territory and can be the responsibility of either Enbridge or the marketer (check your contract or directly with the marketer). Delivery to you and the Monthly Customer Charge are regulated rates charged by Union Gas. These latter rates are regulated by the Ontario Energy Board. As a result, when a promotional message claims a 10% saving, it is referring to 10% of the 2/3 controlled by the competitive supplier.

Example: A typical annual gas bill is $1,200. One third of that, $400, is a regulated transportation and delivery charge (numbered 2, 3, and 4). The remaining $800 is the gas supply charge. A competitive gas supplier is offering a 10% saving is offering a saving of $80, which is 10% of the $800 gas supply charge.

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