What is the Cap & Trade Program?
Cap and trade is coming Jan. 1, 2017
The provincial government has introduced a cap-and-trade program. The plan is to cap the amount of greenhouse gas (GHG) emissions that Ontario homes and businesses are allowed to emit, and lower that limit over time. Under this new legislation, Union Gas must buy emission allowances for the natural gas used by its residential and business customers, as applicable. Those costs will then be included on your natural gas bill. As the program evolves, we’ll keep you informed of changes related to natural gas, here, as well as in your Union Gas bill inserts. For general information, please visit ontario.ca/capandtrade.
Key facts about cap and trade
Will add about 3.3 cents per cubic metre of gas to your natural gas bill in 2017
Will add about $70-$80 to the average residential customer’s annual natural gas bill in 2017
Natural gas will still be the lowest-cost energy source
Save up to $2,500/year by heating your home and water with natural gas vs. electricity, oil or propane
The additional cap-and-trade cost will be included in the Delivery charge on your natural gas bill
What will cap and trade cost you?
The price of emission allowances will vary with supply and demand, and can change over time. In January 2017, the price will likely be about 3.3 cents per cubic metre of natural gas you use. That cost will be added to the Delivery charge on your bill. If the price of emission allowances changes, the charge on your bill will be adjusted accordingly, just as it is for changes in gas commodity costs. You pay what Union Gas pays – no more, no less.
Learn more about how cap and trade will affect you as a
natural gas customer