Addition of RNG socialization fees to your bill in fall 2024
Regulations state Énergir must deliver a quantity of 2% of renewable natural gas to the grid in 2023, 5% by 2025 and 10% by 2030. To meet these requirements, not only must these volumes be available, they must also be sold and distributed through the network.
Without voluntary purchasing, 60 Mm³ (1% of the total volume distributed) should have been socialized to all customers in late 2023. Business efforts have resulted in the voluntary sale of 41 Mm³, which has reduced the volumes to be socialized to 19 Mm³.
The cost of these socialized volumes, $7.8 million, will be recovered on all volumes consumed by customers over a one-year period starting on October 1, 2024.
Who does this apply to?
All customers whose RNG consumption is less than the percentage set out in the government regulations (2% for the 2024–2025 rate case).
What are the socialization fees?
The RNG socialization fees will be 0.135¢/m³ for the 2024–2025 rate case, subject to approval by the Régie de l’énergie. The RNG socialization fees should be less than 1% of a customer’s bill.
Customers who are subject to these fees cannot take advantage of the CATS exemption, unlike voluntary RNG purchasers.
When will the RNG socialization fee be applied to customer bills?
Starting in October 2024, it will apply to customers whose RNG purchases fall below the current 2% regulatory target for RNG delivery for each billing cycle of fiscal year 2024–2025, subject to approval by the Régie de l’énergie.
The applicable rate will be indicated on the bill.
What minimum RNG quantities will be required in coming years to avoid the RNG socialization fee?
For the 2024–2025 rate year: 2%
For the 2025–2026 rate year: 5%
Questions about your bill?
Talk to your assigned Major Industries advisor