Items on your bill gas

Items on your bill

The Alberta Utilities Commission’s mandate is to approve rates for regulated utilities that ensure safe reliable service at just and reasonable rates.


Items on your gas bill

 

The Alberta Utilities Commission’s mandate includes approving rates for regulated utilities that ensure safe reliable service at just and reasonable rates. The following table provides an example of the breakdown of items on a typical residential consumer’s gas bill during higher consumption months (or winter months):


The monthly cost estimates shown in the graph are based on a typical natural gas utility bill in Alberta during January, with higher natural gas consumption​. Costs will vary depending upon the transmission and distribution service area, the municipality where you live, your energy use and billing period.
 

This summer months graph shows how lower natural gas consumption changes the items on your bill based on a typical natural gas bill during July.

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Energy charge/Cost of gas (21-26%) - The per unit cost (price per gigajoule (GJ)) for the natural gas used during the billing period. This is the cost for the commodity itself and does not include the cost to deliver natural gas to homes and businesses. Prices are based on the competitive energy market. Energy charges vary between retailers, who purchase natural gas in the market through a combination of long-term and short-term contracts with suppliers. If you do not choose to sign a contract with a competitive retail service provider, your rate will fluctuate each month and your regulated rate is approved by the AUC. For more information please visit retail rates.

Customers have a choice to sign a fixed or variable rate contract with a competitive retailer. For more information, please see https://ucahelps.alberta.ca/cost-comparison-tool.aspx for service providers in your area.

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    Administration fee (1-5%) - This charge covers the cost to your retailer to provide billing and customer services. It is a fixed charge based on the number of days in the billing period. For more information please visit retail rates.

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    Delivery charge (fixed) (14-20%) - The fixed delivery charge is designed to recover the costs to the distribution company that do not vary with consumption of gas. These include the design, installation and financing of pipelines and meters. The fixed charge is a daily charge based on the number of days in the billing period. For more information please visit distribution rates.

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    Delivery charge (variable) (10-24%) - The variable charge is designed to recover the costs to the distribution company that vary with consumption of gas. These are principally related to capital and operating costs, including labour, materials and supplies. For more information please visit distribution rates.

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    Rate riders (0-13%) - A rate rider is a temporary, additional rate on a consumers bill, which is separate from the monthly rates that are charged for gas usage. A rate rider can be a credit or a charge. Riders are intended to recover costs or refund money to the utility for previously forecasted costs that the utility based its rates on. Any amount that was over-forecasted is refunded to customers and under-forecasted amounts are charged to customers through various riders. For more information please visit rate riders.

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    Municipal franchise fee (7-14%) - Municipalities charge distribution companies for the right to exclusively serve its residents and to have utility infrastructure on municipal lands. The utilities pass on these costs to their customers. The municipality determines the level of the fees. For more information please visit other charges.

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    Carbon charge (17-21%) - As part of the federal government's climate action plan to reduce greenhouse gas emissions, the federal government developed a pollution pricing system implemented under the federal Greenhouse Gas Pollution Pricing Act. This includes a federal fuel charge that utilities are required to pay to the federal government for natural gas that they deliver to consumers in Alberta starting January 1, 2020. The charge will be applied on the natural gas bills of consumers. It will be calculated based on volume according to pricing schedules determined by the federal government. Please visit the Government of Canada website for more information. ​

Access all regulatory documents

Anyone can access applications and proceeding information through the eFiling System.

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