Quarterly change reflects natural gas market price increases, bills still up to 7% lower than 2018
CHATHAM, ON, Dec. 13, 2018 /CNW/ - Union Gas has applied to the Ontario Energy Board to adjust the rates customers pay for natural gas effective Jan. 1, 2019. This change largely reflects forecasted increases in the price Union Gas expects to pay to buy natural gas supplies from the market. Market prices have increased significantly over the past two months as demand for natural gas has grown due to unseasonably cold weather across North America.
This proposed rate increase follows four successive decreases in 2018. Inclusive of this proposed change, the total annual natural gas bill for households will be up to 5 per cent lower than a year ago and up to 7 per cent lower for businesses.
Residential1 customers who buy natural gas from Union Gas will see the following changes:
- North West Ontario – an increase of $71 a year, for an annual average bill of $910. A $44 (5%) annual bill decrease compared to 1 year ago.
- North East Ontario - an increase of $53 a year, for an annual average bill of $1,042. A $13 (1%) annual bill decrease compared to 1 year ago.
- Southern Ontario – an increase of about $55 a year, for an annual average bill of about $762. A $29 (4%) annual bill increase compared to 1 year ago.
Business2 customers who buy natural gas from Union Gas will see the following changes:
- North West Ontario – an increase of $2,985 a year. A $1,815 (7%) annual bill decrease compared to 1 year ago.
- North East Ontario – an increase of $2,239 a year. A $382 (1%) annual bill decrease compared to 1 year ago.
- Southern Ontario – an increase of $1,808 a year. A $468 (3%) annual bill increase compared to 1 year ago.
Average household using 2,200 m3 of natural gas a year
Average business using 73,000 m3 of natural gas a year in Southern Ontario and 93,000 m3 in Northern Ontario
"Natural gas supplies are abundant and as a result the price our customers pay for the natural gas commodity has steadily declined over time. While there are seasonal market fluctuations, natural gas prices are lower today than 10 years ago, remarked Sarah Van Der Paelt, director of marketing and energy conservation, Union Gas. "Natural gas continues to be the most cost-effective energy choice for homes and business, and our customers can save even more by leveraging Union Gas energy-efficiency rebate programs."
Customer rates are adjusted without mark-up each quarter to reflect changes in the market price of natural gas supplies. To understand how Union Gas sets its rates, refer to the following videos. Check out uniongas.com/residentialrates to view current natural gas rate information by postal code.
Union Gas is committed to improving energy efficiency through a range of products, services and incentive programs to help customers lower their energy use and save money. Learn more about Union Gas energy savings programs at: Residential: uniongas.com/savemoney; Business: uniongas.com/savemoneyandenergy.
About Union Gas
Union Gas Limited is a major Canadian natural gas storage, transmission and distribution company based in Ontario with over 100 years of experience and service to customers. The distribution business serves about 1.5 million residential, commercial and industrial customers in more than 400 communities across Ontario. Union Gas, an Enbridge Company-one of Canada's Top 100 Employers for 2018-has assets of $8.9 billion and approximately 2,300 employees. For more information, visit uniongas.com or find us on Twitter: twitter.com/uniongas, Facebook: facebook.com/uniongas and YouTube: youtube.com/user/uniongas.
Manager, External Communications and Media Relations, Union Gas
Ph: 519 436-5490 or 1-800-571-8446 ext. 5005490
Cell: 519 365-1010
SOURCE Union Gas Limited