Canadian Manufacturing

Enbridge, Union Gas apply to cut natural gas prices in Ontario

by Canadian Manufacturing Staff   

Canadian Manufacturing
Regulation Oil & Gas

Utilities said applications with OEB come thanks to strong natural gas supplies in North America

TORONTO—Natural gas customers in Ontario may soon get reprieve on their bills just in time for winter as two major distributors in the province have applied to decrease their rates.

Enbridge Gas Distribution Inc. and Union Gas Ltd. said this week they have both applied to the Ontario Energy Board (OEB) to decrease their rates effective Oct. 1.

Both companies pointed to strong supplies as the reason for their respective applications with the OEB.

“Due to plentiful new supplies, the price our customers pay for natural gas has steadily declined and is lower today than it was 10 years ago,” Union Gas president Steve Baker said in a brief statement released by the company.


Union Gas said its residential customers can expect a five to nine per cent decrease in their annual natural gas bill—a $50 to $80 average annual savings—depending on location.

Enbridge, meanwhile, didn’t provide an anticipated percentage decrease, but said customers can expect annual savings of $65—the median in Union Gas’ average annual savings estimate.

The company said the decrease is two-fold: first, about $18 a year to reflect lower natural gas prices in North America; and a $47 a year refund approved in the OEB’s rate decision.

The move by Enbridge and Union gas comes about six months after both firms applied with the OEB to increase energy rates charged to customers by nearly 40 per cent.


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