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Why do we have to pay delivery charges?

We get asked this a lot. The delivery charge is what the public utility must charge to cover the cost of operating the natural gas distribution system. In New Brunswick, natural gas is provided in an “unbundled” market, which means the cost of distributing natural gas to you is separated from the cost of the actual natural gas used. So that’s why you see what looks like an additional charge, but it is really just a more transparent view of your bill.

Many other utilities and energy providers also charge you for operating their systems and delivering services for you, but typically hide this cost in the final rate.

Why do we have to pay delivery charges?

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Why were natural gas prices so high for winter 2013/2014?

Natural gas costs were higher than usual during the winter of 2013/2014 because the commodity portion of your bill increased. This increase was due to an unusually cold winter causing increased demand - in turn causing commodity prices in Atlantic Canada and New England to reach unprecedented highs.

Fortunately, a regulated, more stable pricing option is available through Enbridge Gas NB that minimizes spikes throughout the year. Remember, when it comes to choosing your natural gas commodity supplier, the right choice makes all the difference. Learn more about our product here or other natural gas marketers here.

Why were natural gas prices so high for winter 2013/2014?

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Why is the natural gas commodity price not regulated?

Enbridge Gas NB does offer a regulated commodity product - the Enbridge Utility Gas rate. It’s regulated so over a twelve month period, our customers pay the same price we actually purchase it for.

Other natural gas commodity suppliers are not regulated, and the price you pay is more directly tied to the market price at any given time. When choosing your natural gas commodity supplier, the right choice makes all the difference.

Why is the natural gas commodity price not regulated?

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How is the delivery charge on my bill determined?

For residential and small commercial customers, a "market based method" is used to determine the fee for the delivery rate. The goal of this method is to provide a typical customer in the Small General Service (SGS) rate class with a 20% annual savings compared to electricity.

For medium to large commercial customers, a "cost of service method" is used. Using this method, distribution rates and charges are based on what it costs to provide distribution services to each rate class.

Enbridge submits an application to the New Brunswick Energy and Utilities Board once a year. The purpose is to have distribution rates and charges for each rate class reviewed and approved in an open and transparent regulatory process.

How is the delivery charge on my bill determined?

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Is it true natural gas costs more to use my appliances and heat my home?

Definitely not true. Natural gas, including delivery and commodity charges, is actually the most cost-effective option – especially when it comes to using your appliances. It’s less expensive and very efficient, this is why Enbridge Gas NB believes we offer the best energy product available.

There are many other benefits to using natural gas:

- A natural gas BBQ is always connected to the fuel source. No need for refills.

- With a natural gas clothes dryer, clothes dry in half the time and come out without static cling because of higher humidity.

- A natural gas range provides professional-calibre cooking with instant heat and precision control.

- Many other natural gas appliances can enhance your home such as fireplaces, on-demand water heaters, generators, patio heaters, and more!

Is it true natural gas costs more to use my appliances and heat my home?

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If large industrial companies leave you, will residential rates change?

No. In NB, we use a market-based method of determining delivery rates for residential customers, which means a delivery rate that targets 20% annual savings compared to electricity. If a large commercial customer were to leave the public system it would only affect other commercial customers.

If large industrial companies leave you, will residential rates change?

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Why are distribution fees charged even when I don’t use any gas?

Fair question. The only component of your distribution fees which is charged regardless of whether or not gas is consumed is the customer charge. The customer charge is a $16.00 monthly flat fee which helps cover the cost of meter readings, pipeline maintenance, customer support, and 24-hour emergency services. This is similar to the monthly fee you would pay with other utilities such as electricity.

Why are distribution fees charged even when I don’t use any gas?

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Why do we pay some of the highest natural gas prices?

Essentially it’s because our distribution system covers a smaller amount of people, so naturally it costs more on average to operate.

Mature markets have established distribution systems, some of which have been around for hundreds of years, and serve millions of customers - so it costs less to manage each household’s natural gas delivery.

NB’s public natural gas utility is one of the youngest in North America. Mature utilities, some of which have been in existence for over 100 years, have had a long time to pay down the costs of building the system.

As the public distribution system grows and becomes more established in the province, we aim to provide even more affordable rates for our customers and make natural gas the clear choice for generations to come.

Why do we pay some of the highest natural gas prices?

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Why do we have to pay delivery charges?

We get asked this a lot. The delivery charge is what the public utility must charge to cover the cost of operating the natural gas distribution system. In New Brunswick, natural gas is provided in an “unbundled” market, which means the cost of distributing natural gas to you is separated from the cost of the actual natural gas used. So that’s why you see what looks like an additional charge, but it is really just a more transparent view of your bill.

Many other utilities and energy providers also charge you for operating their systems and delivering services for you, but typically hide this cost in the final rate.

Why do we have to pay delivery charges?

View Answer
Close

Why were natural gas prices so high for winter 2013/2014?

Natural gas costs were higher than usual during the winter of 2013/2014 because the commodity portion of your bill increased. This increase was due to an unusually cold winter causing increased demand - in turn causing commodity prices in Atlantic Canada and New England to reach unprecedented highs.

Fortunately, a regulated, more stable pricing option is available through Enbridge Gas NB that minimizes spikes throughout the year. Remember, when it comes to choosing your natural gas commodity supplier, the right choice makes all the difference. Learn more about our product here or other natural gas marketers here.

Why were natural gas prices so high for winter 2013/2014?

View Answer
Close

Why is the natural gas commodity price not regulated?

Enbridge Gas NB does offer a regulated commodity product - the Enbridge Utility Gas rate. It’s regulated so over a twelve month period, our customers pay the same price we actually purchase it for.

Other natural gas commodity suppliers are not regulated, and the price you pay is more directly tied to the market price at any given time. When choosing your natural gas commodity supplier, the right choice makes all the difference.

Why is the natural gas commodity price not regulated?

View Answer
Close

How is the delivery charge on my bill determined?

For residential and small commercial customers, a "market based method" is used to determine the fee for the delivery rate. The goal of this method is to provide a typical customer in the Small General Service (SGS) rate class with a 20% annual savings compared to electricity.

For medium to large commercial customers, a "cost of service method" is used. Using this method, distribution rates and charges are based on what it costs to provide distribution services to each rate class.

Enbridge submits an application to the New Brunswick Energy and Utilities Board once a year. The purpose is to have distribution rates and charges for each rate class reviewed and approved in an open and transparent regulatory process.

How is the delivery charge on my bill determined?

View Answer
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