Cost Analysis
Enbridge Gas Rates Ontario 2026: Full Breakdown
The Ontario Energy Board approved new Enbridge Gas rates effective April 1, 2026. Here is exactly what changed, what every line on your bill means, and whether your annual gas cost is going up or down this year.
Key Takeaways
- A typical EGD residential customer using 2,400 cubic metres per year is seeing an annual bill decrease of $68.49 effective April 1, 2026.
- A typical Union South M1 customer saw an annual bill increase of $89.65 effective January 1, 2026. Not every zone moves the same direction.
- Across the province, the April 2026 change ranges from about $56 to $136 lower per year, or 4.6 to 13.6 percent, depending on zone and usage.
- The federal carbon charge has been $0 on Enbridge Gas bills since April 1, 2025. A tiny facility carbon charge of 0.0145 cents per cubic metre remains inside the delivery line.
- The EGD monthly customer charge is $27.69 (unchanged). The Union South charge is $28.91 (up $12 per year).
- All-in gas costs work out to roughly 33 cents per cubic metre in the EGD zone, before the fixed customer charge.
How Enbridge Gas Rates Actually Work
Every Enbridge Gas customer pays the same five components, but the numbers change by rate zone and by quarter. The five components are:[6]
- Monthly customer charge. A fixed dollar amount per month you pay even if you use zero gas. Covers meter reading, billing, and a share of distribution system costs.
- Delivery to You. A cents-per-cubic-metre charge that pays for the local distribution system (the pipes that run from the city gate station to your house). This is tiered: the rate drops as you use more gas, since high-use customers are more efficient to serve per unit.
- Transportation. The cost of moving gas from storage hubs (mainly Dawn in southwestern Ontario) to the local distribution system. This is a separate line because Enbridge contracts with pipeline operators.
- Gas Supply Charge. The commodity cost of the gas itself at the wholesale level. This is what Enbridge pays for the molecules. It moves with North American gas markets and is adjusted quarterly through the QRAM process.
- Cost Adjustment. A true-up line that reconciles prior-period forecasts against actual wholesale costs. Can be positive or negative in any given quarter.
QRAM stands for Quarterly Rate Adjustment Mechanism. Four times a year, Enbridge files updated forecasts with the Ontario Energy Board, and the OEB approves new commodity and delivery rates effective the first of January, April, July, and October. The customer charge and delivery tiers change less often, usually through full rate-case proceedings rather than QRAM.[4]
Enbridge Gas Rate Zones
The former Enbridge Gas Distribution company and the former Union Gas company merged in 2019. Even though both now operate under one legal entity, the rate zones remain separate for billing purposes because the underlying distribution systems and regulatory rate bases are different.[1]
| Zone | Residential Rate Class | Coverage Area |
|---|---|---|
| EGD | Rate 1 | GTA, Niagara, central Ontario, parts of eastern Ontario |
| Union South | Rate M1 | Kitchener-Waterloo, London, Sarnia, Windsor, Chatham |
| Union North East | Rate 01 | Sudbury, North Bay, Ottawa Valley, eastern Ontario |
| Union North West | Rate 10 | Thunder Bay, Kenora, northwestern Ontario |
Your Enbridge bill identifies the zone and rate class near the top. If you cannot tell which zone you are in, your city usually tells you: GTA and central Ontario are EGD, while Kitchener, London, and Windsor are Union South.
EGD Rate 1: April 1, 2026 Residential Rates
For customers in the EGD zone buying gas directly from Enbridge (system gas), here are the approved rates effective April 1, 2026.[2]
| Charge | Rate | Change from prior period |
|---|---|---|
| Customer Charge (monthly) | $27.69 | No change |
| Delivery: first 30 m3 | 14.7285 cents/m3 | Minor |
| Delivery: next 55 m3 | 13.8902 cents/m3 | Minor |
| Delivery: next 85 m3 | 13.2338 cents/m3 | Minor |
| Delivery: over 170 m3 | 12.7444 cents/m3 | Minor |
| Transportation to Enbridge | 6.2510 cents/m3 | +$13.91/yr typical |
| Gas Supply Charge | 10.1745 cents/m3 | -$86.05/yr typical |
| Cost Adjustment | -2.5697 cents/m3 | Credit to customer |
| Facility Carbon Charge | 0.0145 cents/m3 | No change |
| Federal Carbon Charge | 0 cents/m3 | Removed April 2025 |
| Typical annual bill impact (2,400 m3/yr) | -$68.49 | Decrease |
The story in EGD this quarter is a lower gas supply charge driving an overall decrease, partially offset by small increases in transportation. The cost adjustment of negative 2.5697 cents per cubic metre is a credit that rolls in savings from prior-quarter forecasting differences.[3]
Union South M1: January 1, 2026 Residential Rates
Union South customers saw their rate change at the start of the year. Here is what a typical Rate M1 residential customer is paying effective January 1, 2026.[7]
| Charge | Rate | Annual change |
|---|---|---|
| Customer Charge (monthly) | $28.91 | +$12.00/yr |
| Delivery: first 100 m3 | 8.7985 cents/m3 | +$24.34/yr typical |
| Delivery: next 150 m3 | 8.4440 cents/m3 | Included above |
| Delivery: over 250 m3 | 7.5288 cents/m3 | Included above |
| Gas Supply Charge | 20.4037 cents/m3 | +$71.36/yr |
| Cost Adjustment | -1.1703 cents/m3 | -$18.11/yr credit |
| Facility Carbon Charge | 0.0145 cents/m3 | +$0.06/yr |
| Typical annual bill impact | +$89.65 | Increase |
Union South customers are seeing a different picture because the underlying commodity and delivery forecasts ran the other way. Note that the delivery rates in Union South look much lower than EGD because the tier structure is different (fewer, wider tiers). The all-in cost per cubic metre is actually comparable between the two zones once you add up all the components.
How Much Does a Typical Ontario Home Spend on Gas?
The OEB and Enbridge both use 2,400 cubic metres per year as the reference figure for a typical residential consumer.[3] That number assumes a reasonably efficient home with a high-efficiency furnace, gas hot water, and a gas range or dryer. Actual usage varies widely based on home size, insulation, thermostat setting, and whether you have gas appliances beyond the furnace.
| Usage Profile | Annual m3 | EGD all-in cost (approx) |
|---|---|---|
| Low use (small home, mild winter) | 1,500 | $830 |
| Typical Ontario home | 2,400 | $1,125 |
| Larger or older home | 3,200 | $1,390 |
| Large or poorly insulated home | 4,000 | $1,655 |
These figures include the monthly customer charge, the volumetric delivery charges, transportation, gas supply, and cost adjustment, using an approximate all-in rate of about 33 cents per cubic metre plus the fixed monthly fee. Actual bills will vary a few percent from these numbers because the tiered delivery rates reward higher usage with a slightly lower marginal rate.
Why Did the Federal Carbon Charge Disappear?
Prior to April 1, 2025, the federal carbon charge was the largest single line item on many Enbridge bills, adding about 12.39 cents per cubic metre. The federal government removed the charge for residential and commercial natural gas customers effective that date.[1][6]
A much smaller facility carbon charge of 0.0145 cents per cubic metre remains and is now rolled into the Delivery to You line rather than shown separately. For a typical 2,400 cubic metre home, that works out to about 35 cents per year, which is rounding error compared to the old federal charge.
For most households, the removal reduced annual gas costs by roughly $270 to $300, which is a permanent one-time drop that is now fully reflected in current bills. The April 2026 QRAM changes are on top of that, not in addition to it.
What Drives Enbridge Gas Rates Over Time
Three forces move Enbridge residential rates from quarter to quarter:[4]
- North American natural gas commodity prices. The gas supply charge tracks wholesale prices, which are set by continental markets. LNG exports, pipeline capacity, weather, and storage levels all feed into the price. Enbridge does not control the commodity cost, only the pass-through.
- Distribution system costs. Enbridge recovers maintenance, capital, and labour costs through the delivery and customer charges. These are reviewed in full rate cases (usually every few years) rather than quarterly.
- Cost adjustments. When prior-period forecasts were too high or too low, the cost adjustment line corrects the record. If last quarter Enbridge collected more than actual costs, customers get a credit. If they collected less, customers make up the difference.
One thing to keep in mind: rate cases matter more than QRAMs for long-term bill trajectory. When Enbridge invests in new pipelines, storage, or system upgrades, the costs eventually show up in customer charges and delivery rates, not the quarterly commodity line.
Can You Lower Your Enbridge Gas Bill?
The short answer: yes, but the biggest savings come from using less gas, not from switching providers. Here is the breakdown.
Things That Actually Move the Needle
- Insulation and air sealing. Attic insulation, basement insulation, and air sealing around windows, rim joists, and penetrations can cut winter gas usage by 15 to 30 percent in older homes. This is the highest-return category for most Ontario homeowners.
- Smart thermostat with setback. A properly configured programmable or smart thermostat typically saves 5 to 10 percent on heating costs. Some Enbridge rebate programs offer a free or subsidized smart thermostat for qualifying customers.
- Water heater changes. If you rent a gas water heater, the rental fee itself is a separate issue (and can be a big one). If you own it, upgrading from a standard tank to a high-efficiency condensing unit cuts hot water gas usage by 15 to 20 percent.
- Heat pump retrofit. Installing a cold-climate heat pump lets you heat with electricity during milder weather and gas during deep cold. Real-world Ontario households report 50 to 70 percent lower gas usage after a properly sized heat pump retrofit. The upfront cost is significant, but rebates are available.
Things That Move It Less Than You Think
- Switching to a gas marketer. Marketers sell fixed-price contracts against the OEB-regulated commodity rate. Because only the commodity portion is contestable, your maximum theoretical savings are limited to the spread between the marketer price and the Enbridge commodity rate. Marketer contracts also lock you in for years and have cancellation penalties. For most homeowners, this is a wash or worse.
- Equal billing plans. These smooth your monthly payments across the year so you do not get hit with huge winter bills, but they do not change the total amount you pay.
- Timing your usage. Unlike electricity, gas is not time-of-use priced. Doing laundry at night does not save anything on the gas side.
How Enbridge Rates Compare to Electric Heating
Since gas rates are only half the picture for anyone weighing heating options, here is the rough comparison at current rates:
| Heating Type | Effective cost to deliver 1 GJ of heat |
|---|---|
| High-efficiency gas furnace (96% AFUE) | $9-$11 |
| Mid-efficiency gas furnace (80% AFUE) | $11-$13 |
| Cold-climate air-source heat pump (COP 2.8) | $10-$20 (depends on TOU timing) |
| Electric baseboard (COP 1.0) | $27-$54 (depends on TOU timing) |
| Geothermal heat pump (COP 4.0) | $7-$13 |
High-efficiency gas is still the cheapest or tied for cheapest heating fuel in Ontario on an energy-delivered basis, especially after the carbon tax removal and the April 2026 commodity price drop in the EGD zone. Cold-climate heat pumps are close and pull ahead during shoulder seasons and overnight hours on ultra-low overnight electricity plans. Electric baseboard is the most expensive way to heat a home in Ontario.
Practical Recommendations
If You Are an EGD Customer
Your 2026 gas bill is getting cheaper for the second consecutive year (carbon tax removal in 2025, commodity decrease in 2026). If your furnace is working and your insulation is reasonable, there is no urgent reason to change anything. When your furnace eventually needs replacement, re-run the heat pump versus high-efficiency gas comparison against the rates in effect at that time.
If You Are in Union South
You are seeing a modest annual increase. If the increase is a financial strain, the highest-return moves are insulation and a smart thermostat. Check Enbridge for current efficiency rebates before spending out of pocket.
If You Are Shopping for a New Furnace
High-efficiency (96% AFUE or higher) gas remains competitive on operating cost. Verify that the installer is sizing the furnace based on a proper heat loss calculation rather than rules of thumb, since oversizing is the most common mistake and wastes gas every cycle.
If You Are Considering a Heat Pump
Heat pumps still make financial sense for many Ontario homes even with cheaper gas, particularly for homes currently on oil, propane, or electric baseboard. For homes switching from high-efficiency gas, the math is closer and depends heavily on rebates, electricity rate plan (ultra-low overnight helps a lot), and insulation quality.
Related Guides
Energy costs are a system. These guides cover the pieces that connect to your Enbridge bill.
- Ontario Electricity Rates 2026: TOU, Tiered, and ULO (the electric side of the same comparison, with current rates)
- Carbon Tax Removal 2025: Impact on Ontario Heating Costs (why the federal carbon charge disappeared from your bill)
- Gas vs Electric Heating Ontario (full cost comparison for heat pump, gas furnace, and electric)
- Ontario Low-Income Energy Assistance 2026 (OESP, LEAP, and free home efficiency retrofits)
- Ontario Home Energy Rebates 2026 (current rebate programs for insulation and HVAC)
- Heat Pump vs Furnace Ontario (heating system comparison at current rates)
Frequently Asked Questions
Why did my Enbridge Gas bill change on April 1, 2026?
The Ontario Energy Board approves Enbridge Gas rate changes every quarter through the Quarterly Rate Adjustment Mechanism (QRAM). The April 1, 2026 QRAM passed through lower gas commodity costs and adjusted delivery charges. Depending on your rate zone, your typical annual bill is either decreasing or increasing modestly.
Which rate zone am I in?
Enbridge Gas operates four residential rate zones in Ontario: EGD (former Enbridge Gas Distribution, covering most of the GTA and central Ontario), Union South (most of southwestern Ontario including Kitchener-Waterloo, London, Windsor), Union North East (Sudbury, North Bay, Ottawa Valley), and Union North West (Thunder Bay and northwestern Ontario). Your bill identifies the zone, typically near the top in the rate class line. Rate M1 is the residential rate in Union South, and Rate 1 is the residential rate in EGD.
Are Enbridge Gas bills going up or down in 2026?
It depends on your zone. Effective April 1, 2026, a typical EGD residential customer using 2,400 cubic metres per year is seeing an annual bill decrease of about $68.49. Union South M1 customers saw a $89.65 annual increase effective January 1, 2026. Bills across the province range from about $56 lower to $136 lower per year (4.6 to 13.6 percent) in zones where rates are dropping.
What is the monthly customer charge on my Enbridge bill?
In the EGD zone, the residential customer charge is $27.69 per month effective April 1, 2026, unchanged from the prior period. In Union South the residential customer charge increased to $28.91 per month. This is a fixed fee you pay regardless of how much gas you use.
Why is there no carbon charge on my gas bill anymore?
The federal carbon charge was removed from Enbridge Gas customer bills effective April 1, 2025. A small facility carbon charge of about 0.0145 cents per cubic metre remains and is rolled into the Delivery to You line, but it is negligible compared to the old federal fuel charge.
What are the main components of my Enbridge gas bill?
Your bill has five main parts: a fixed monthly customer charge, a tiered delivery charge (cents per cubic metre, declining as you use more), a transportation charge, a gas supply commodity charge, and a cost adjustment that trues up prior forecasts. The all-in per-cubic-metre cost works out to roughly 33 cents in the EGD zone.
Can I shop around for a different gas supplier?
Yes. Ontario allows gas marketers to sell gas under fixed-price contracts. If you buy from a marketer, the gas supply charge on your bill is replaced by the marketer's rate and terms. Delivery, transportation, and the customer charge stay the same because they are regulated by the OEB. The OEB publishes current Enbridge rates so you can compare. Most marketer contracts lock you in for multiple years, so read the terms carefully before signing.
- Enbridge Gas Ontario Rates FAQ
- Enbridge Gas Residential Rates (EGD Rate 1, April 2026)
- Ontario Energy Board QRAM Application, Enbridge Gas, April 1, 2026
- Ontario Energy Board Natural Gas Rates
- Ontario Energy Board QRAM Application, Union, January 1, 2026
- Enbridge Gas Understanding Your Bill
- Enbridge Gas Union South M1 Residential Rate Schedule