Enbridge to Raise Natural Gas Prices By As Much As 23% July 1

A decision from the Ontario Energy Board released Thursday approved Enbridge Gas Inc.’s June application for an increase, after the utility company outlined North American gas shortages.

SEATTLE (Oil Monster): Just in time for BBQ season, Enbridge is set to raise natural gas prices in Ontario — and the province’s oversight body is warning there could be more increases to come.

A decision from the Ontario Energy Board released Thursday approved Enbridge Gas Inc.’s June application for an increase, after the utility company outlined North American gas shortages.

The approval, which comes into effect July 1, 2022, represents an 18.5 per cent to 23.2 per cent increase or about $240 to $250 for the typical residential consumer, depending on their area, including Union Gas rate zones.

The estimated impacts are based on an assumed 2,200 cubic metres to 2,400 cubic metres of consumption. Homeowners’ final bills will depend on their individual use.

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

Enbridge, under the board’s regulations, is not allowed to earn a profit from natural gas distribution.

Beyond this summer, when residential gas consumption is at its lowest, the OEB said the International Energy Agency is “warning of continued significant upward pressure on prices beyond this quarter,” saying that North American production of natural gas has not been able to keep up with demand.

Courtesy: www.thestar.com