Enbridge Gas Distribution, a regulated Canadian utility, has received approval from the Ontario Energy Board for its proposed rate increase, effective July 1, 2008.
The rate adjustment is primarily due to an increase in North American natural gas prices and higher tolls for natural gas transport from western Canada to Ontario. These costs are expected to be passed through to customers without any mark-up.
For typical residential customers who buy their gas supply from Enbridge Gas Distribution, the changes will result in an increase of about C$300 annually.
Residential customers who purchase their natural gas from a marketer will see the bill increase by about C$33 annually. The gas supply charge for these customers will depend on their contract with their marketers.
The gas supply charge has increased to C$0.39 per cubic meter (cbm) from C$0.304 per cbm. Enbridge Gas Distribution has stated that it does not earn a profit on the price of natural gas. Customers who purchase their gas supply from Enbridge Gas Distribution reportedly pay the same price that the company pays to purchase the natural gas in the North American market.