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Home ~ Customer Service ~ Understanding Your Natural Gas Bill

Understanding your Natural Gas Bill

There are three parts to the natural gas bill that NRG customers pay:

1: Natural Gas Commodity;
2: Local Distribution Costs;
3: Transportation & Storage.

1: Natural Gas Commodity – The commodity is referred to as the molecule or simply put, the fuel burned by your appliances. As a result of deregulation, customers have a commodity purchase choice for their Natural Gas Commodity rate. You may:

  • Sign a contract with an energy retailer for a fixed commodity rate. A customer that is served by a retailer and pays a retailer commodity rate is referred to as a Direct Purchase customer; or
  • Receive the NRG’s System Gas customer commodity rate. A customer that pays this rate is referred to as a System Gas customer.

On your NRG Gas bill, the commodity rate you will be billed at depends upon the commodity purchase choice you have made. If you have not signed a contract with an energy retailer then you automatically are billed at the System Gas commodity rate for the commodity portion of your bill. If you have signed a contract with an energy retailer then you will be billed on your NRG bill at your contracted energy retailer rate for the commodity portion of your bill.

2: Local Distribution Costs – Local distribution charges relate to the cost for us to move the gas locally from the supply points at the boundary of NRG’s territory to your home’s gas appliances. All customers must pay local distribution charges.

Local distribution charges consist of both a monthly fixed charge that is dependent upon your rate class (Residential or Commercial) and a common volumetric block rate structure.

3: Transportation & Storage – Transportation and storage charges relate to the cost for us to move the gas from locations outside of the franchise area (primarily originating from Alberta transport on the TransCanada Pipeline - TCPL) through Union Gas’ Ontario Distribution Systems to the NRG boundary and then to your home or business. Both System gas customers and customers with a retail energy contract pay transportation charges.

Call Before You Dig

Call before you dig

If yard work is on the to-do list, remember: before you dig, you must have all pipelines located by Ontario One Call. A network of hydro, natural gas, phone and cable lines, as well as water and sewer pipes, may lie just under the surface of your property. Sinking a shovel into the ground could result in serious injury, widespread service disruptions and costly repairs. And under Ontario regulations, you could be held liable for all of it.

To arrange to have utility lines located and marked for free, contact Ontario One Call at 1-800-400-2255. Or create an e-ticket online at, at least five full business days before you plan to dig.

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