Natural Gas
In the natural gas sector, utilities are required to submit the rates they propose to charge their customers to the Board for review. The Board approves rates associated with the cost to transport, store and distribute natural gas from utilities to consumers as well as charges to administer natural gas accounts. The Board also approves the price utilities can charge consumers for the natural gas they use. Natural gas utilities do not make a profit on the sale of natural gas. It is sold to consumers with no mark-up. Consumers who have signed contracts with a natural gas marketer will pay the price set out in their contract.
The Board licenses all natural gas marketers who sell natural gas to residential and small commercial consumers.
The Board is required to determine if constructing a natural gas pipeline is in the public interest by considering need, safety, economic feasibility, community benefits, security of supply and environmental impacts. Each municipality may grant a gas utility the right to deliver gas service and use road allowances or utility easements within its borders. The specific terms and conditions of these franchise agreements between the municipality and the utility are subject to Board approval.
The Board also reviews applications by gas distributors to create and operate underground gas storage areas and designates geological formations suitable to store natural gas in Ontario. Board approval is also required before a natural gas utility can sell its distribution system or amalgamate with another distributor.
There are currently two default service providers of natural gas in Ontario, Enbridge and Union Gas. These two entities are regulated by the Board. The Board does not regulate competitive services in the natural gas sector. These include the sale of natural gas, water heater rentals and repair or maintenance services. These products and services are competitive services and can be obtained from various companies.
Read more about this topic: Ontario Energy Board
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