Enbridge set to hike natural gas rates for Ontario customers
Company told by Ontario regulator to spread increase over 27 months to soften blow to customers
TORONTO—The cold winter that gripped Ontario will put a chill on the wallets of Ontario customers of Enbridge Inc. for the next couple of years.
Enbridge says the Ontario Energy Board (OEB) has confirmed an interim rate hike granted earlier this year, but has told the utility to spread the costs over a longer period.
The increase will be spread over 27 months instead of the 12 months that Enbridge originally proposed.
Enbridge told the regulator earlier this year that the rate increase was needed to cover the added costs from what it called Ontario’s coldest winter in 37 years.
Enbridge says it was forced to buy more natural gas at a much higher cost than expected and it must recover those costs.
The vice-president of Enbridge Gas Distribution, Malini Giridhar, says the company has no problem with spreading the pain out.
“We support the decision to ease the impact of the extremely cold winter on our customers,” Giridhar said in a statement.
“We will be implementing revised rates in the next quarterly rate adjustment.”
Enbridge’s original proposal would have meant an increase of nearly $400 over the next year for the average customer, who normally would pay roughly $1,000 annually for natural gas.