TORONTO, ONTARIO--(CCNMatthews - Mar 23, 2004) - Enbridge Gas
Distribution has received approval from the Ontario Energy Board
to adjust its prices effective April 1, 2004.
The utility's gas supply charge will increase by approximately 14
per cent. The utility's new residential gas supply price will be
24.07 cents per cubic metre changing from 21.21 cents per cubic
metre. The 2.2 cents per cubic metre surcharge that was
implemented effective January 1, 2004 will end. This surcharge
only applied to customers who buy the gas they use from the
utility.
The delivery charge will increase for all customers due to higher
tolls to transport gas from Western Canada to Ontario.
Change for Residential Customers
The impact of the changes effective April 1, 2004 will vary based
on the amount of gas a customer uses and whether the customer
buys their natural gas from the utility or a natural gas
marketer.
For typical(1) residential customers who buy their gas supply
from Enbridge Gas Distribution, a regulated utility, the gas
supply and delivery charge changes will result in an increase of
about $94 dollars on the total annual bill.
For typical(1) residential customers who buy their gas supply
from a natural gas marketer, the delivery charge change will
result in an increase of about $6 on the annual bill.
Natural gas continues to be the best energy choice for consumers.
Over the past five years, natural gas has been on average about
43 per cent cheaper than electricity. (2)
Enbridge Gas Distribution does not make a profit on the gas
supply charge. The gas supply charge is established based on a
12-month market forecast. It is reviewed quarterly and, if
necessary, adjusted. If there is a difference between the
forecast prices charged to customers and the actual amount paid
by the Company, the difference is collected from or reimbursed to
customers.
Enbridge Gas Distribution delivers gas to about 1.7 million
customers in its franchise area. Of those customers, about 60 per
cent buy their gas supply from the utility. About 40 per cent of
the utility's customers buy their gas supply directly from
marketers and the price they pay for the gas supply charge is
based on the terms of their contracts.
For more information about Enbridge Gas Distribution prices
please see this backgrounder:
http://www2.cdn-news.com/database/fax/2000/apr04back.pdf
(1)Based on a typical residential customer who uses 3,064 cubic
metres of natural gas a year for home and water heating.
(2) Based on the annual bill for a typical residential customer
who buys gas from the utility. Updated based on annualized rates
effective April 1, 2004.
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