Ontario natural gas prices are changing, but still lower than previous years
Natural gas customers across Ontario will see increases on their bills in the New Year, but overall, prices will remain lower in 2017 than they have been during recent peak periods – even when factoring in the cost of cap and trade.
The changes include the routine quarterly adjustment for the market price of the natural gas commodity – known as the Quarterly Rate Adjustment Mechanism (QRAM) – which has taken place every three months since 2001 and will impact rates for customers of Ontario’s three natural gas utilities – Enbridge, Union Gas and NRG – beginning Jan. 1, 2017.
In addition, the OEB recently granted interim rates for cap and trade and a rate adjustment for utility operations for Enbridge and Union Gas – all of which will impact customer bills in the New Year. Union Gas is also changing its rate zones to better reflect where it buys natural gas from and how it transports it to its customers.
Despite these rate adjustments and the introduction of cap and trade, overall, customers are still paying significantly less than they were at peak periods in 2009 and 2014, when natural gas costs were higher in Ontario due to factors including high market prices and unusually cold weather.
The amount of the increases to customers’ bills will vary between utilities and how much natural gas individual customers use. However, typical residential customers can expect to see their bills rise by between $4.65 and $13.54 on average per month for the year ahead. Continue reading Natural Gas Rate Changes Jan. 1, 2017