Are utilities allowed to make a profit on the gas they sell?
Your local utility does not make a profit from buying gas and reselling it to you. This does not apply if you buy your gas from a marketer. Your total bill consists of charges for the gas supply you consumed, transportation of the gas to Ontario from where it was purchased in Alberta or other producing region and for storage and delivery to your premises. The gas supply charge (sometimes simply called ‘gas charge’), one of the gas-related items on your bill, consists only of the utility’s cost to buy the gas you used, plus a very small amount to cover the costs of running the utility’s gas purchasing department. The rate used to calculate this charge and the other gas-related charges on your bill are all reviewed and regulated by the Ontario Energy Board.
