Natural Gas Rebate Program - Frequently Asked Questions

On this page

Extension of the rebate program to March 31, 2009.

How long has the rebate program been extended for?
The rebate program has been extended for three years until March 31, 2009.

Why did the Government of Alberta extend the rebate program?
To continue providing benefits of resource ownership to Albertans under the program.

What other changes were made to the rebate program?
For most consumers, rebates will be given for six months of the year, from October through March when residential consumers typically use 80 percent of their natural gas for the year and when gas prices are traditionally highest.

Starting in the April 2006 rebate period, agricultural consumers (commercial greenhouses, agricultural irrigators, grain dryers and forage dehydrators) who consume most of their gas outside of the normal winter period, will be allowed to select their six rebate months at any time before the June 30 application deadline.

The rebate program eligibility was extended to customers of district heating systems using forms of energy not currently rebated, such as renewable energy. District heating systems are systems in which heat is produced at a central facility and distributed to buildings via steam or hot water pipes. In previous years, only district heating systems using natural gas, propane, heating oil, and kerosene were eligible for rebates.

General Questions

When will I be eligible for rebates?
The Natural Gas Rebate Program is in effect from October to March. A rebate is applied to eligible bills when two of three major regulated gas companies serving the majority of the province (Direct Energy Regulated Services North, Direct Energy Regulated Services South and AltaGas Utilities) are charging natural gas prices greater than $5.50 per gigajoule (GJ) on customer bills.

What is the rebate amount?
The rebate is set according to the following schedule:  

If the cost of natural gas for any of the winter months is...  The rebate will be...
 Over $5.50, up to $7.50/GJ  $1.50/GJ
 Over$7.50, up to $9.00/GJ  $2.50/GJ
 Over $9.00, up to $12.00/GJ  $3.25/GJ
 Over $12.00/GJ  $3.25 per GJ, plus all gas costs over $12.00 per GJ, based on the highest regulated rate

How long will rebates be given?
The rebate program is in effect until March 31, 2009.

How will I receive my rebate?
For most Albertans, the rebate will appear as a credit on their bill. Some consumers, for example those who use heating oil, kerosene or propane, agricultural consumers, or those who receive their energy from a district heating system, will have to apply for their natural gas rebate and will receive their rebate by cheque from the Alberta government.

What is the total cost of the rebate to the government?
At a rebate amount of $1.50 per GJ, it is estimated a rebate program would cost about $50 million for each month rebates are paid.

Who is eligible for natural gas rebates?
Most users of natural gas in Alberta who receive a natural gas bill are eligible and will have their rebate amount deducted from their natural gas bill.

Residential and commercial consumers will be eligible for rebates on their entire gas consumption in a month when the Natural Gas Rebate Program (NGRP) has been declared. Residential use includes buildings such as: homes; emergency shelters; nursing homes; dormitories; rooming houses; and home-based businesses.

Commercial consumers include: facilities such as office buildings; retail stores; municipal buildings; non-profit organizations; small businesses; farming operations; landlords and condominium corporations; recreation centres; churches; and community halls.

Large non-industrial consumers such as universities, hospitals and schools that use more than 5,000 GJ of natural gas in a month may be eligible for rebates on their consumption over 5,000 GJ. These consumers will have their first 5,000 GJ rebated by their natural gas supplier, but must apply for the rebate on that portion of their consumption over 5,000 GJ/month.

Rebates for eligible industrial consumers, such as manufacturers, will only apply to 5,000 GJ of consumption per meter per calendar month.

Consumers NOT eligible for rebates include those who:

  • use natural gas or Other Fuels covered by the program for transportation fuel;
  • use natural gas or Other Fuels covered by the program for exploring, producing, processing, re-processing, refining, upgrading, storing or transporting natural gas, oil, or oil sands;
  • use natural gas or Other Fuels covered by the program as a feedstock;
  • resell natural gas or Other Fuels covered by the program; or
  • use natural gas or Other Fuels outside of Alberta.

I heat with propane/ kerosene/ heating oil/ electricity. Will I be eligible for a rebate?
In addition to natural gas, rebates will be provided for heating with propane, kerosene, heating oil and in certain special circumstances, electricity. Users of these Other Fuels will have to apply for rebates. See the FAQs on Applying for Rebates and Heating with Other Fuels for more information.

What is a district heating system?
A district heating system supplies thermal energy in the form of steam or hot water through a distribution system from a central plant to individual users. Users then extract the energy from the distribution system for their individual heating. Through centralizing energy production, district energy systems are large enough to provide for the flexible use of alternate fuel sources including renewable energy sources.

How will I know if a district heating system is eligible to receive rebates?
Contact the NGRP Office at 780-422-0300 (Edmonton and area) or toll-free at 1-877-422-0330.

If I purchase natural gas under a contract at a locked-in rate, am I eligible for rebates?
Yes, rebates will be provided to all eligible consumers regardless of whether they are served by a natural gas company at a regulated rate or under a contract with a competitive retailer. These consumers will get the same rebate amount per GJ as other eligible consumers, up to their cost of gas.

Most residential customers who have a contract with a competitive retailer will see their rebate on their bill statements. The total rebate paid will not exceed the cost of natural gas charged to the consumer.

Will the rebate change the amount that I pay on my monthly budget payment plan?
Budget payment plans are based on the total bill including rebates.

What if I didn't receive a rebate in the past but think I am eligible now?
If the rebate does not appear on your gas bill and you think you are eligible for a rebate, you should submit an application to the NGRP Office for their review.

I am moving and will be changing gas suppliers. How will I get my rebate?
Rebates are based on consumption. If a rebate is activated for that month, your rebate will be based on your final consumption on your bill. Your new natural gas supplier would pay you a rebate on any consumption after you move, if it occurs in a rebate month.

How do I receive a rebate if gas is included in my rent?
Where more than one residential or commercial tenant shares the gas meter, the rebate will appear on the gas bill for the shared meter. It's anticipated that this rebate program will shield renters and condo owners from rate increases due to high winter gas costs, because landlords, property managers and apartment associations can take the rebate into account when they establish rental rates and condo fees.

I have more than one house on the property and pay the gas through the one account. Is there an additional rebate?
You will receive one rebate based on all gas consumed by the additional houses measured through that meter.

Should I have my natural gas account reclassified if I think I should be receiving the residential rather than the commercial rebate?
No. As all rebates are based on consumption, there is no advantage between having a residential or a commercial classification on your natural gas bill. The same rebate rate per GJ will be equally applied to residential and commercial consumers.

I live in Lloydminster on the Saskatchewan side, but my heating fuel supplier is an Alberta company. Do I qualify for a rebate?
No. The Natural Gas Price Protection Act reflects the Alberta government's commitment to Alberta citizens to return a portion of the natural gas royalty through rebates when the high prices of the resource most affect consumers. Saskatchewan residents don't own Alberta's resources and will not receive rebates. Only Alberta residents are eligible.

How does this program help to conserve energy?
The tiered system of rebate amounts means that as gas prices increase, rebates do not fully offset increases in gas bills. When gas prices are high, the incentive to conserve energy will still be present.

How will the rebate work for schools, hospitals and other large, non-industrial consumers that use over 5,000 GJ of natural gas in a month?
If these facilities are served by a gas company/co-op, they will receive their rebate on the first 5,000 GJ on their gas bill. If these facilities burn over 5,000 GJ per month, they will need to submit an application for the additional rebate. If facilities buy natural gas from a competitive retailer, rather than from a regulated rate provider, they may need to apply for the rebate on all of their consumption, including the first 5,000 GJ.

I have a hockey rink/swimming pool/other facility that uses more gas in the summer than the winter. Can I choose my rebate period?
No, only certain agricultural consumers are eligible for rebates outside of the October to March rebate period.

My business is in the oil and gas sector. Will I get a rebate?
Businesses in the oil and gas sector are not eligible for rebates. To find out whether your business qualifies, contact the NGRP Office or send in a completed application form. Application forms can be downloaded from this site and are available at MLA offices, Alberta registry agents, Agriculture Financial Services Corporation Offices (AFSC), competitive retailers, and propane and heating oil dealers.

When will I know that a rebate will be implemented during the winter months?
The Alberta government will announce through the media and on http://www.energy.alberta.ca/ prior to the start of each month if regulated gas prices warrant a rebate during the October to March period. Propane, heating oil and kerosene users will have an entire month to make their purchase decision based on current costs and requirements.

Who needs to apply for rebates?
Most eligible natural gas consumers will have their rebate deducted automatically from their natural gas bill. Consumers with higher usage, those who heat with  other fuels and select agricultural consumers will likely have to apply.  For more information on applying, see the FAQs on Applying for Rebates.

Who can I call for more information about the rebates?

  • For general information, please call Service Alberta at 780-310-4455.
  • For a copy of the Natural Gas Price Protection Act, visit the queen’s printer website.
  • For general information on the Natural Gas Rebate Program, call Alberta Energy's Public Information Centre at 780-427-0265 (to call toll-free in Alberta, first dial 310-0000).
  • For information on program implementation, call the NGRP Office at 780-422-0300 (Edmonton and area) or toll-free at 1-877-422-0330.

Applying for Rebates

I thought the rebate was automatic, why do I need to apply?
The rebate will indeed be applied directly on the vast majority of Albertans' natural gas bills; however, some Albertans will need to apply. Consumers that need to apply include:

  • Large, non-industrial, consumers that use over 5,000 GJ of natural gas in a month that may be eligible for rebates on their consumption over 5,000 GJ. This may include universities, hospitals and schools. It is necessary to apply for the rebate on gas consumed in excess of 5,000 GJ/month.
  • Users of Other Fuels, including propane, kerosene and heating oil.
  • Any customers of competitive retailers that don't receive a rebate on their bills, such as large industrial consumers who buy directly from producers and retailers. Most residential customers who have a contract with a retailer will see their rebate on their bill statements.
  • Eligible agricultural consumers who wish to choose a different rebate period.
  • Customers of eligible district heating systems.

Consumers who are unsure of their eligibility can contact the NGRP Office at 780-422-0300 (Edmonton and area) or toll free at 1-877-422-0330.

Where can I get an application form?
Rebate Application forms
Forms are also available at MLA offices, Alberta registry agents, AFSC Offices, competitive retailers, and propane and heating oil dealers. You can also contact the NGRP Offices at 780-422-0300 (Edmonton and area) or toll free at 1-877-422-0330 and ask for an application form to be mailed or faxed to you.

Can I apply on-line?
You can download the application form in pdf format, but cannot fill out the form online. All applications must be filled out and submitted by mail or fax. Applicants must provide a signature on the form and, in some instances, copies of invoices and statements are required with the form.

What is the deadline for applications for the 2008-09 Natural Gas Rebate Program?
All applications for the 2008-09 Natural Gas Rebate Program must be postmarked or fax transmittal dated no later than midnight June 30, 2009.

I purchased a natural gas contract from a competitive retailer. Do I need to apply for the rebate?
Most residential customers with natural gas contracts will receive their rebate directly on their bills. All other customers of competitive retailers must apply for their rebate.

How can I be sure I get my rebate?
Please review your natural gas bill showing consumption in any month in which a rebate was activated. If you do not see the rebate on your bill, contact the NGRP Office to determine if you need to apply.

I applied and have been approved for the rebate. How will the rebate be paid out and when should I expect to receive this rebate?
All rebates that do not appear as credits on your bill will be processed as a government cheque and mailed after your application is approved and the required information is received. Rebates will be held until they have accumulated to $25 or more before a cheque is issued.

Heating with Other Fuels (Standard Method)

I heat with an Other Fuel such as propane, kerosene or heating oil. Will I be eligible for a rebate?
Rebates will also be provided for users of propane, kerosene, heating oil and, in certain special circumstances where eligible heating fuel is not available or cannot be used for medical reasons, electricity. These consumers will need to apply for rebates. Please see the FAQs on Applying for Rebates for more information.

The rebate program also includes customers of eligible district heating systems.

I filled my propane, heating oil or kerosene tank for the winter before the rebate program commenced. Can I get a rebate on that?
Only purchases and deliveries/pick-ups in months when a natural gas rebate has been activated are eligible for rebates under the program, unless the Alternative Method is selected. See the FAQs on the Alternative Calculation Method. Rebate months are based on the monthly rates for the natural gas companies serving a majority of Albertans for the months of October through March. Rebates will be paid for purchases of kerosene, propane and heating oil purchased and delivered/picked-up in the months where rebates are activated.

Certain agriculture consumers are able to select an alternative six-month period. See the FAQs on Agriculture Consumption for more information.

Why don't I receive a rebate for the propane, heating oil, or kerosene I purchased in a month where a rebate was not in effect?
Any purchases and deliveries made outside a month where a rebate has been declared are not eligible, unless the Alternative Method is selected. See the FAQs on the Alternative Calculation Method.

When will I know if a rebate is available in any month?
Just prior to the start of each month during the October through March period, the Alberta government will announce through the media and on this site if regulated gas prices warrant a rebate. An announcement of a natural gas rebate also means that a rebate for propane, heating oil and kerosene has been triggered for that month as well.

Remember to give your propane or heating oil supplier sufficient notice if you are requesting a non-scheduled fill.

What is the rebate amount for those consuming Other Fuels?
All eligible Alberta consumers or users of propane, heating oil or kerosene will upon application approval and submission of eligible fuel receipts, delivery slips or invoices, receive the following rebates determined by the NGRP:

Natural Gas Rebate $1.50/GJ $2.50/GJ $3.25/GJ $3.25/GJ +
Propane 3.83¢/l 6.38¢/l 8.30¢/l 8.30¢/l +
Heating Oil 5.80¢/l 9.67¢/l 12.57¢/l 12.57¢/l +
Kerosene 5.65¢/l 9.42¢/l 12.25¢/l 12.25¢/l +

Rebates will be issued for fuel purchased and delivered during those months when a natural gas rebate is declared.

The conversion between natural gas rebates ($/GJ) and Other Fuels rebates (¢/l) is made on a heat equivalent basis (i.e., a $1.50/GJ rebate for propane is equivalent to a rebate of 3.83 cents per litre).

Is there a volume limit for rebates on Other Fuels?
There is only a volume limit for rebates for industrial consumers. Industrial consumers are limited to rebates on 5,000 GJ of consumption per month per meter, or the equivalent amount of propane, heating oil or kerosene.  Large, non-industrial, consumers that use over 5,000 GJ of natural gas in a calendar month may be eligible for rebates on their consumption over 5,000 GJ.  These consumers need to apply for the rebate on gas consumed in excess of 5,000 GJ/month.

What are the volume limits for industrial consumers?
The volume limits are:
Natural Gas 5,000 GJ per month per meter.
Propane 195,000 litres per month per tank.
Heating Oil 130,000 litres per month per tank.
Kerosene 133,000 litres per month per tank.

Alternative Calculation Method for Residential Consumers of Propane, Heating Oil and Kerosene

Why was the alternative method created?
In the past, purchases of propane, kerosene or heating oil were eligible for a rebate only if the purchase was made and delivered during a declared winter rebate month. The alternative method allows consumers that purchase these fuels in other periods, but consume them in the winter months, to participate in the rebate program.

For example: Prior to April 1, 2006, if you had your propane tank filled in late September, you would not have received a rebate - even if October was a rebate month and the bulk of your purchase was consumed during winter rebate months. Under the alternative calculation method, this purchase may be eligible for a rebate.

How does the new alternative method help residential Other Fuels consumers like me?
The calculation of the alternative method takes into account when you consume your fuel, not just when you purchase it.

How does it work?
With the new alternative method, rebates are calculated by multiplying your annual purchases by the annual rebate rate. It doesn’t matter when you purchase your fuel in the April 1-March 31 period.

The annual rebate rate for a winter rebate period is determined in March, the last month of the winter rebate period. The annual rebate rate is calculated using monthly rebate rates and average consumption for each month.

When did the alternative method become available?
April 1, 2006.

Do I have to declare my calculation method ahead of time?
You will have to declare your method at the time you submit your application. However, you may change your rebate method once the annual rate is set in March each year.  If you submit all your proofs-of-purchase for the year, the Program Office will determine which method provides the best rebate benefit and make the adjustment for you.

What about deadlines?
Eligible consumers must apply for their rebate and choose their calculation method for the rebate year by the June 30 application deadline following the applicable winter rebate period.

In consultation with the NGRP Office, consumers may change calculation methods up to August 31.

Why can’t you just base my rebate on my actual consumption, instead of the average residential consumption?
Natural gas consumers know exactly how much energy they consume in a rebate month—natural gas consumption is metered and is on consumers’ bills. But for propane, kerosene and heating oil consumers, actual consumption is more difficult to determine, because the fuel is not necessarily delivered or purchased each month. Using the annual rebate rate provides a basis for residential consumers of these fuels to receive a rebate based on an estimate of their consumption during the winter rebate months. These consumers can choose which method works best for them.

Which method is better?
It depends on your purchase patterns. After three years, most consumers of propane, kerosene and heating oil understand the way rebates are calculated and take this into account when deciding when to buy. While the majority of applicants will receive a larger rebate using the traditional calculation method, some consumers will benefit from the new alternative method.  The Other Fuels interactive rebate calculator can help you determine which method may be best for you.

Where can I find out more about the alternative method?
Call the NGRP Office at 780-422-0300 or toll-free 1-877-422-0330, or click here to view the NGRP information sheet on the alternative method.

Agricultural Consumers

Each gas meter or Other Fuel tank is entitled to a maximum of six months for rebate eligibility, whether the gas meter or fuel tank is strictly used for an approved agriculture activity or is used for both domestic and approved agriculture purposes.

My farm outbuildings are heated. Do they qualify?
Yes. The rebate program is based on natural gas consumption or purchases of propane, heating oil or kerosene. Heating for all farm buildings is eligible.

However, if the farm buildings are on the same gas meter as an eligible agriculture purpose (e.g., heating farm buildings and irrigation), the consumer will have to decide which six month period will apply to all the consumption on that natural gas meter.

I have more than one house on the property and pay the gas through the one account. Is there an additional rebate?
You will receive one rebate based on all gas consumed by the houses or buildings measured through that meter.

My outbuildings are on separate meters. How will the rebate be applied?
Rebates will be applied to the consumption for each meter. The rebate will be shown as a deduction on each of the gas bills.

I have a meter for my outbuildings on the farm, but live in town. How will the rebates be applied?
Rebates will be applied to the consumption for each meter. The gas bill for the meter serving the outbuildings will receive a rebate. The residence in town will also qualify for a rebate that will be applied to the bill applicable to that meter.

I am an agricultural producer that uses more natural gas or Other Fuels in the summer than the winter. Will I get a rebate during the summer?
Certain agricultural consumers are eligible for rebates outside of the October to March rebate period because that is when they operate and have their highest usage. These are: forage dehydrators, grain dryers, commercial greenhouses and agriculture irrigators (natural gas, propane, heating oil and kerosene only). These agricultural consumers will be able to choose their rebate months at any time up to the June 30 application deadline each year.

In any month, price protection is not provided if gas prices for most Albertans are below the $5.50 GJ threshold.

I'm an agricultural operator and received a natural gas rebate credit on my bill. Am I able to apply for the agricultural rebate component instead?
Yes, but only if you are part of the four sectors who qualify. Once you have applied, the NGRP Office will work with your natural gas supplier to ensure that you receive the correct rebate. You will not receive a winter heating rebate and an agriculture optional rebate on the same gas meter.

Once you have filled out the form and returned it to the NGRP Office, the Program Administrators will then review and if approved, forward an appropriate cheque less any rebate your natural gas supplier credited to your account. The Program Administrators will also deal with your natural gas supplier to make the necessary reconciliation.

If I heat my house and am also eligible for this agricultural option, what rebate(s) am I entitled to?
If a single meter supplies both the house and the eligible agriculture operation, you will need to select either the optional six month period, or the winter heating months to be eligible for the rebate. Rebates would be paid on all gas consumption during those six months in which a rebate is activated. Gas consumption occurring outside of the selected six months, would not be eligible for any rebates.

If there is a separate meter for the house and another for the eligible agricultural operations, then the house will automatically receive a rebate for eligible months during October to March.

Select agricultural consumers (forage dehydrators, grain dryers, commercial greenhouses and agricultural irrigators) may pick any six months at any time before the June 30 application deadline each year.  They may also change their election any time prior to the June 30 application deadline, even if rebates have already been paid.  The Agriculture interactive rebate calculator can help you determine which months may be best for you.

Last reviewed/revised: 2008-10-06