Natural gas bills expected to rise 12%

Thunder Bay - The decline in North American natural gas storage levels is the main reason for the expected increase in residential natural gas bills this spring.

Enbridge Gas is applying to the Ontario Energy Board for a price increase to reflect changes in market prices, which would take effect on April 1.

If the application is approved, the average annual cost for Thunder Bay residents will increase by 12%.

The federal carbon tax will also increase on April 1.

Enbridge says that for customers in the city, the overall impact is an increase of $136 per year in the cost of using natural gas.

Under OEB rules, the company reviews its prices quarterly and adjusts them based on market changes, subject to OEB approval.  

The company says its pending request to the Energy Board is "based on preliminary estimates that storage inventories across North America are trending downward due to cold weather (excluding Enbridge storage)."

The company explains that it purchases natural gas in the summer when prices are lowest and stores it underground in southwestern Ontario, one of the largest integrated natural gas storage facilities on the continent.

In the winter, when natural gas prices are higher on the open market, it draws on these reserves.

Source:  https://www.tbnewswatch.com/local-news/natural-gas-bills-expected-to-go-up-by-12-per-cent-10318381