What are price adjustments?
Price adjustments refund or collect the difference between forecast costs and actual costs from a prior period. The price Union Gas charges you for natural gas is based on a forecast of what the market price of gas will be for the next 12 months. This forecast is updated and approved by the OEB every three months to reflect changes in the market price of gas. Union Gas is not allowed to earn a profit on the sale of gas, so we track the difference between the price we charge for gas based on this forecast, and the actual cost of gas we purchase during the same period. When forecast costs differ from actual costs, Union Gas applies a price adjustment to refund or collect the difference. This way, we can ensure that customers pay the actual cost of gas.
Price adjustments refund or collect the difference between forecast costs and actual costs from prior periods. The price Union Gas charges you for natural gas is based on a forecast of what the market price of gas will be during the next 12 months. This forecast is updated and approved by the OEB every three months to reflect changes in the market price of gas. Union Gas does not earn a profit on the sale of gas, so we track the difference between the price we charge for gas based on this forecast and the actual cost of gas we purchase during the same period. When forecast costs differ from actual costs, Union Gas applies a price adjustment to refund or collect the difference. This way, we can ensure that customers pay the actual cost of gas.
