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Home/Community/Understanding Natural Gas/Cost of Gas Print This Page

Cost of Gas

Learn more about how the cost of gas is calculated.


Natural Gas Rates

Prior to the start of each month, Gas Alberta Inc. designs a natural gas rate (on a $ per GigaJoule (GJ) basis) to cover its estimated gas costs to supply Federation utilities for the upcoming month (to see current and past Gas Alberta rates: Gas Rates in Alberta).


This monthly pooled rate is then forwarded to the utilities to charge their customers. This rate is affected by market forces. As the market price for natural gas increases or decreases, so does the cost of gas for residents and businesses.


On top of the monthly pooled rate, Gas Alberta Inc. charges to the utilities a small variable rate to cover the costs of administration and goods and services relating to the safe and reliable supply of natural gas to consumers.


The Co-op and Community gas utilities may charge additional fees to cover the costs of administering, operating, and maintaining the gas utility and supply.

Fixed Delivery Charge

The fixed delivery charge (or Monthly Service Charge) is designed to recover the costs that do not vary with consumption of gas including administration, design/installation of pipelines and meters.


These show up on a bill as a single line item and the dollar value may not change from month to month.

Variable Delivery Charge

The variable delivery charge is designed to recover the costs that vary with consumption of gas. These are principally related to capital and operating costs, including labour, materials and supplies.


The utility may break this out on a bill separate from the cost of gas or included as part of a gas consumption line item.


The cost will vary dependent on how much natural gas a customer consumes in a given month. (i.e. a $3/GJ gas rate, plus a $1/GJ variable rate = $4/GJ. If that customer uses 10 GJ of gas in a month, their consumption charge would be $40 that month.)

Federal Fuel Charge

Greenhouse Gas Pollution Pricing

The Federal Fuel Charge is part of the Federal government's Greenhouse Gas Pollution Pricing Act. It is a per Gigajoule (GJ) rate applied to the consumption of gas in a month. Utilities are required to collect the Federal Fuel Charge from consumers.

The rates reflect a carbon pollution price of $65 per tonne of carbon dioxide equivalent (CO2e) in 2023


Current Fuel Charge

As of April 1, 2023, the Federal Fuel Charge for natural gas will be a rate of approximately $3.33 per Gigajoule. The Greenhouse Gas Pollution Pricing Act has a schedule of rates to the Federal Fuel Charge increasing annually by $15 per tonne of CO2e up to $170 per tonne in 2030.

Estimated Federal Fuel Charge Rates ($ / GJ)

2023 ($65 per tonne) $3.3271
2024 ($80 per tonne) $4.0951
2025 ($95 per tonne) $4.8631
2026 ($110 per tonne) $5.6311
2027 ($125 per tonne) $6.3991
2028 ($140 per tonne) $7.1671
2029 ($155 per tonne) $7.9324
2030 ($170 per tonne) $8.7004

FedGas
For 60 years, our utilities have been helping to grow communities through providing natural gas as a source of heat and fuel.

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