Enbridge will increase natural gas prices by up to 23% on July 1

Just in time for barbecue season, Enbridge is set to raise natural gas prices in Ontario – and the province’s watchdog warns there could be more increases to come.

An Ontario Energy Board decision released Thursday approved Enbridge Gas Inc.’s June request for a hike, after the utility company reported gas shortages in North America.

The approval, which takes effect July 1, 2022, represents an increase of 18.5% to 23.2% or approximately $240 to $250 for the typical residential consumer, depending on their region, including the rate zones of Union Gas.

Estimated impacts are based on assumed consumption of 2,200 cubic meters to 2,400 cubic meters. Owners’ final bills will depend on their individual usage.

The OEB, which sets rates quarterly, has approved a way to reduce costs for residents during this period, as proposed by Enbridge – the fourth consecutive mitigation strategy for which the company has requested, according to the decision. Without it, bills would have been affected by about $270 to $315, the board said.

Enbridge, under commission regulations, is not permitted to make a profit from the distribution of natural gas.

Looking beyond this summer, when residential gas consumption is at an all-time low, the OEB said the International Energy Agency “warns of significant and continued upward pressure on prices at beyond this quarter,” saying North American natural gas production has not been able to keep up with demand.

JOIN THE CONVERSATION

Conversations are opinions of our readers and are subject to the Code of conduct. The Star does not share these opinions.

Leave a Comment