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What is the difference between distribution and commodity charges?

02 Apr 2018

The distribution charge includes all of the costs UGI incurs to own, operate and maintain its pipeline systems, which deliver natural gas to customers’ homes. The distribution charge also includes the costs associated with providing customer and emergency response services.

The commodity charge reflects the actual cost of the natural gas a customer consumes. All costs for the gas customers consume is passed along to them with no mark-up by UGI. In other words, UGI purchases the natural gas supply from producers and re-sells it to the customer at the same price. UGI makes no profit on the sale of the natural gas customers consume, and consumers have the right to choose the company that generates their natural gas.