Enbridge to raise natural gas prices By As Much As 23% July 1

I hope everyone enjoyed their Canada Day Long Weekend Celebrations. But while we were all celebrating Canada’s 155th Birthday, Enbridge raised gas prices by 23%, 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 meters to 2,400 cubic meters 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.

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.

These implications of rising gas prices will likely affect other utilities as well. For instance, approx. 10% of Ontario’s electricity is created by gas generating stations which means we will likely see a trickle-down effect which will increase electricity prices too. And if natural gas increases, I would venture to guess propane prices will also increase.

Not the kind of news Canadians would’ve liked to been celebrating on our biggest holiday. I have worked on dozens of Save-on Energy projects while I was a Asset/Property Manager so if you think this will affect your bottom line and require guidance on what to do to help curb these increases please feel free to give me a call and I would be happy to share my insights.