The appellants, two major gas distributors in Ontario, appealed a decision of the Divisional Court upholding the Gas Distribution Access Rule (GDAR) issued by the Ontario Energy Board.
The GDAR permitted gas vendors to determine how customers are billed for gas commodity sales and distribution services.
The appellants argued the Board lacked jurisdiction under the Ontario Energy Board Act to make such billing rules and failed to follow the required rule-making process.
The Court of Appeal held that the standard of review for subordinate legislation is correctness.
Applying this standard, the Court found that the Board had ample jurisdiction to make the billing provisions, as they regulated an important part of the gas distribution business.
The Court also found the Board complied with the statutory notice and comment process.
The appeal was dismissed.
