Natural gas costs continue to be lower than 10 years ago
CHATHAM, ON, Dec. 22, 2016 /CNW/ - Union Gas today announced that the Ontario Energy Board has approved a change in the rates its customers will pay effective Jan. 1, 2017. Residential customers who buy gas from the utility can expect an average annual increase ranging from $56 to $163, depending on location. For details visit uniongas.com/rates.
The key driver of this increase is the introduction of the government's new cap-and-trade program which begins Jan. 1, 2017 and represents about $74 of the total bill increase for a typical household. Under this new legislation, Union Gas must buy emission allowances for the natural gas used by residential and applicable business customers in Ontario and pass this cost on to consumers. The cap-and-trade costs will be included in the delivery charge on customer bills.
There are other changes for the expected cost to buy gas and ship it from where it is produced into the Union Gas distribution network in Ontario. Union Gas buys these items from a competitive market and passes the costs through to customers without markup. Customers pay what we pay. While the market price of natural gas fluctuates, natural gas costs less today than 10 years ago and, thanks to abundant supply right here in North America, it will continue to be the most affordable energy for years to come.
The smallest change of between $6 and $12 a year depending on location is an annual change in distribution rates to recover the expected costs to safely and reliably deliver natural gas to homes and business in 2017. We work hard to keep delivery costs low. In fact in most areas, the costs customers pay for natural gas delivery is about the same as it was five years ago.
One of the best ways to manage energy costs is by improving the energy efficiency of your home or business and Union Gas is committed to help through energy-saving advice, incentives and rebates. For example the Union Gas Home Reno Rebate offers qualified residential customers up to $5,000 in rebates for energy-efficiency assessments and renovations that can significantly lower their energy costs. More information is available at: Residential: www.uniongas.com/savemoney, business: www.uniongas.com/savemoneyandenergy.
About Union Gas
Union Gas Limited is a major Canadian natural gas storage, transmission and distribution company based in Ontario with 100 years of experience and service to customers. The distribution business serves about 1.4 million residential, commercial and industrial customers in more than 400 communities across northern, southwestern and eastern Ontario. Union Gas, named one of Canada's Top 100 Employers for 2016, is a Spectra Energy (NYSE: SE) company with assets of $7.2 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.
SOURCE Union Gas Limited
For further information: Union Gas Limited: Andrea Stass, Manager, External Communications and Media Relations, Ph: 519 436-5490 or 1-800-571-8446 ext. 5005490, Cell: 519 365-1010, [email protected]