Natural gas rates in Canada after the carbon charge was removed: what is left on your bill

Since 1 April 2025, natural gas bills in the provinces that used the federal fuel charge no longer carry a consumer carbon charge, because the federal government set the fuel charge rate to zero from that date (Schedule 2 to the Greenhouse Gas Pollution Pricing Act now lists 0 for every fuel after 31 March 2025; marketable natural gas had been 15.25¢ per m³). British Columbia ended its own consumer carbon tax on the same day: the Carbon Tax Act stays on the books, but its rates are 0.00 from 1 April 2025. Enbridge Gas, for example, states that the federal carbon charge was removed from customer bills effective 1 April 2025. What remains on a gas bill is the gas commodity (the gas itself), transportation and storage, delivery by the local distributor, a fixed customer or basic charge, regulator-approved rate adjustments, and sales tax. Québec uses cap-and-trade instead, so its gas prices work differently.

This guide belongs to our overview of rates by province.

Who sets gas rates

Commodity prices change often. FortisBC explains that its commodity charges are reviewed by the BCUC every three months, while delivery charges are reviewed annually. In Ontario, Enbridge's gas supply and transportation prices are adjusted through a quarterly rate adjustment mechanism (QRAM) approved by the OEB. In Alberta, the DRT is approved by the AUC and can change monthly.

An example of posted rates: FortisBC (Mainland and Vancouver Island)

FortisBC's residential rates effective 1 July 2026, as posted in October 2026:

FortisBC's own example for 8 GJ in a 31-day month: basic $13.07 + delivery $67.75 + storage and transport $19.78 + cost of gas $13.28 = $113.88, before other fees and taxes.

Notice the proportions: the gas itself is under 12% of that bill. Most of the cost is delivering and storing the gas. That is why a fall in wholesale gas prices often moves a residential gas bill less than people expect. Our guide to gas bills in GJ and cubic metres walks through the arithmetic for Ontario-style m³ bills too.

What changed on 1 April 2025

Household bills fell immediately in most provinces as a result. Some provinces and utilities also adjusted rebates or programs that had been linked to carbon pricing. The quarterly Canada Carbon Rebate payments linked to the fuel charge ended as well; the Government of Canada site explains the final payment.

What still makes a gas bill go up

1. Weather. Heating degree days drive usage. A colder January can double the GJ used compared with a mild one.
2. Commodity resets. Quarterly or monthly changes in the cost of gas.
3. Delivery rate decisions. Annual or multi-year rate cases before the regulator.
4. Rate riders and deferral account clearances. One-time or temporary charges or credits that settle past forecast errors.
5. Fixed charges. The daily basic charge applies even in summer when you use almost no gas.

Marketers and fixed-price gas

In Ontario and Alberta you can sign a fixed-price gas contract with a licensed marketer or retailer. The utility still delivers the gas and charges delivery; the contract replaces only the commodity (and, in Ontario, sometimes transportation). Compare the contract price with the utility's posted system gas price over the same months, add any admin fee, and check the exit terms. Ontario's cancellation rights cover gas contracts as well as electricity. See also fixed-price contracts vs the default rate.

Mistakes to avoid

• Expecting a fixed gas contract to fix your bill. Delivery, basic charges and riders still change.
• Comparing a summer quote with winter prices. Commodity prices are seasonal; compare like periods.
• Ignoring the basic charge on a seasonal property. It accrues every day the account is open.

Gas commodity versus delivery is explained in more depth in delivery vs commodity charges, and Québec's separate approach in Hydro-Québec Rate D explained. Alberta's gas default sits beside the electricity default described in Alberta's Rate of Last Resort vs retailers.

FAQ

Is the carbon tax coming back on home heating?

The consumer fuel charge rate has been zero since 1 April 2025. Any future change would require new federal or provincial action; check canada.ca for the current status.

Why is my gas bill still high without the carbon charge?

Delivery, storage, transport and basic charges are usually most of the bill, and winter usage dominates.

Do I pay GST/HST on gas?

Yes. Gas and electricity bills are subject to GST or HST, and in some provinces provincial sales tax or a provincial rebate applies differently.

Does the federal change affect Québec?

Québec was not under the federal fuel charge; its cap-and-trade system continues.

Sources

• Government of Canada — fuel charge rates and the end of the consumer fuel charge
• Justice Laws: Greenhouse Gas Pollution Pricing Act — Schedule 2 charge rates
• BC Laws: Carbon Tax Act — tax rates from 1 April 2025
• Enbridge Gas — rate components and removal of the federal carbon charge from 1 April 2025
• FortisBC — residential natural gas rates effective 1 July 2026 and bill example
• Ontario Energy Board — QRAM and gas marketer rules
• Utilities Consumer Advocate — Alberta gas Default Rate Tariff
• British Columbia Utilities Commission — FortisBC rate decisions