Summary
This filing by Enbridge Inc. (ENB) announces that Enbridge Gas Distribution Inc. has received approval from the Ontario Energy Board (OEB) for new rates that will take effect on April 1, 2017. For typical residential customers purchasing their gas supply from Enbridge, this change will result in a modest increase of approximately 1% in their total annual bill, amounting to about $8 per year, bringing the total to approximately $908. The primary driver for this increase is a reduction in the Cost Adjustment refund, which accounts for discrepancies between forecasted and actual costs over the past twelve months.
Key Highlights
- 1Enbridge Gas Distribution Inc. received OEB approval for new rates effective April 1, 2017.
- 2Typical residential customer bills (buying gas supply from Enbridge) will increase by approximately 1% or $8 annually.
- 3The average annual bill for a typical residential customer will be approximately $908.
- 4The rate increase is primarily due to a lower Cost Adjustment refund.
- 5Enbridge Gas Distribution does not profit on the price of natural gas; costs are passed through to customers.
- 6The company highlighted natural gas as an economical and reliable heating choice, noting it has been significantly cheaper than electricity and oil over the past five years.
- 7Information on managing energy bills and assistance programs (LEAP, Home Winterproofing) is available to customers.
Frequently Asked Questions
The new rates, effective April 1, 2017, will lead to a small increase of about 1% (approximately $8 per year) for typical residential customers who purchase their gas supply from Enbridge. Their annual bill is expected to be around $908.
The increase is mainly attributed to a reduction in the Cost Adjustment refund. This refund is designed to reconcile differences between the gas costs Enbridge forecasts and the actual costs incurred over the past twelve months.
No, Enbridge Gas Distribution does not earn a profit on the price of natural gas. The cost of gas supply is passed directly to customers without any mark-up. Any variance between forecasted and actual costs is either recovered from or returned to customers through the Cost Adjustment mechanism.
Enbridge offers several options. Customers can find energy-saving tips and information on rebate programs at enbridgegas.com/energyefficiency. For qualifying customers, the OEB's Low-Income Energy Assistance Program (LEAP) offers financial assistance for past-due bills (enbridgegas.com/LEAP), and the Home Winterproofing Program provides free energy efficiency improvements for those in financial need (enbridgegas.com/winterproofing). Customers facing payment difficulties are encouraged to contact Enbridge to arrange a payment plan.