TORONTO, March 28 /CNW/ - Today the Ontario Energy Board approved
increases to the natural gas supply rates Natural Resource Gas Limited (NRG)
charges its customers effective April 1, 2007.
The charges for consumers purchasing their natural gas from NRG (system
gas customers), reflects an increase in the forecast average price of natural
gas over the next 12 months. As a result of this change, the commodity cost
has increased from 36.1522 cents/m(3) to 37.4201 cents/m(3). A residential
system gas supply customer using 2,000 m(3) per year will see an overall
annualized increase of approximately $25 or 2%. The Board will continue to
review the natural gas commodity rates for system gas customers every three
months and make an adjustment to rates, if necessary.
Residential consumers purchasing their natural gas commodity from a
natural gas marketer (direct purchase customers) will see no changes to their
gas bills as a result of this rate change. This does not include the terms of
any direct purchase contracts that the consumer has entered into with a
natural gas marketer.
This quarterly rate adjustment to the natural gas commodity price
reflects an increase in the forecast average price of natural gas over the
next 12 months. Natural gas utilities forecast the price of natural gas on a
quarterly basis to determine what they expect to pay for the natural gas they
supply to their customers over a twelve-month period. Supply disruptions
caused by unforeseen events, the price of oil on the world market, and severe
or abnormal weather can impact the market price of natural gas.
Natural gas commodity rates are approved by the Board and can change
every three months to reflect a forecast of market prices. The market price of
natural gas varies depending on supply and demand and quarterly rate
adjustments help reduce the risk of large, one-time adjustments to the
The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a healthy and efficient
energy sector with informed consumers, and works towards this vision through
regulatory processes that are effective, fair and transparent.
For more information on the Board, please visit our web site at
www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or
toll-free at 1-877-632-2727.
For further information:
For further information: Vanda Wall, Ontario Energy Board, (416)