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2014-03-25 at 11:13

Energy board approves gas rate hike

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By tbnewswatch.com

Union Gas has been given the greenlight to hike their rates in this region.

The utility company applied to have its rates increased with the Ontario Energy Board. The extreme cold of this winter was said to be one of the contributing factors in asking for a rate increase.

The energy board’s approval means that the average Union Gas customer in Thunder Bay can expect to pay about an additional $16 a month for gas.

The hikes take effect in one week, and impact more than 40,000 customers.

The rate will be re-evaluated at the end of June.

(CKPR Radio)

Tbnewswatch.com(28)

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Comments

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Eastender says:
Of course they approved it. Did they ever not approve a hike?
3/25/2014 11:35:56 AM
Glyder says:
I'm SHOCKED! Shocked I tell ya! Never saw that coming. lol...sigh

How much do you want to bet when they "re-evaluate" market conditions will be a contributing factor (or some other BS excuse) will be the reason for keeping the rate high.
3/25/2014 11:42:16 AM
advocate says:
Is it $16 a month? $16 a year? $16 from now to the end of June?
3/25/2014 11:57:03 AM
Realistic-rose says:
It is $16 per month. Their rates change every quarter, so it is until June 30th, then rates can go up or down at that point.
3/25/2014 8:10:33 PM
CM punk says:
Gas was the last bill to go up as hydro and water keep escalating so this is no surprise to me and should not be for others.
Save your money folks.
3/25/2014 12:03:33 PM
The Beaver..... says:
tell me where I can get my Gas for 16 dollar I want to b first in line
3/25/2014 12:09:31 PM
Arch Stanton says:
Quote: "The extreme cold of this winter was said to be one of the contributing factors in asking for a rate increase."

I'm sorry??? They'll have to explain that one.... cold weather triggers massive extra demand.... massive extra revenues.... and massive extra profits once their largely fixed-costs are covered..... and on top of all that... they want to raise prices?????

Sounds like a Monopoly Abuse-of-Powers investigation is needed here!!!
3/25/2014 12:24:27 PM
progress now says:
I'm not so sure.

I think the increase is ONLY related to the cost of the commodity which is natural gas. The higher the demand the higher the price - that is how it works. The utility is charging more because it is paying more, and is passing along the joy.

I am going to be looking at my bill to be sure what I have just said is true, but I believe that is is.

That said, the increase will be difficult for many. I'm not very happy myself.



3/25/2014 2:46:37 PM
Realistic-rose says:
Really Arch? Explain how cold weather triggers extra demand? Do you not know how natural gas works? If it's colder outside you use more gas. Massive extra profits? Again, really? Do some research. Uniongas does not profit in any way from the gas commodity at all. You pay what they pay for it. A monopoly abuse of power, hmmm, again, really? Go and launch an investigation then, you need to educate yourself before you speak on this. I would love to see an investigation though, so who should investigate this Arch?
3/25/2014 8:08:49 PM
Realistic-rose says:
I also cannot believe that 70 people agreed with this? Really people? None of you know how gas rates work? Why don't you all band together and launch this "investigation"!! This is funny.
3/25/2014 8:12:26 PM
George Street Economist says:
Take a basic supply-demand graph used in Economics 101. On the y-axis is price. On the x-axis is quantity. The supply curve is a straight line with positive slope. The demand curve is a straight line with a negative slope such that they intersect and form an X. This is a simplified model. Where the two curves intersect is called the equilibrium point (what the price should be and at what quantity of gas sold).

We know nothing about Union Gas' supply of gas. We assume that it's holding steady. We do know that due to the persistent cold conditions, demand has risen. Therefore the demand curve shifts to the right. What happens? Well, if you don't believe me, draw it on paper.

The quantity of gas sold will rise and so will the price. Measure the new equilibrium point with respect to the old. Of course, this is only a simplified model and for some goods and markets, these assumptions don't hold. But the outcome is accurate in this case.
3/28/2014 1:01:17 AM
DRL1979 says:
Well isn't that just great. I was just looking to spend the extra money I had left over after paying all of my bills that just keep going up and up.
3/25/2014 12:35:01 PM
hardwood floors says:
another rate hike, yay.
right on. *fart noise*
3/25/2014 12:38:45 PM
workingman says:
Well,there goes all that disposable income the people working for minimum wage just raked in. Sarcasm.
3/25/2014 1:31:13 PM
dillon says:
Please, in '08 at one point we were paying 40c/lb (or whatever unit they use), it's currently 8 and going up to 12. Plus, Arch, it's called supply and demand. Union gas makes money on transport, so with a bigger demand, the more they transported. We'll also barely even see it on our bills, since the Winter is almost over.
3/25/2014 2:21:01 PM
Ranma says:
So how much longer till people start buying woodstoves again and start chopping down their own trees. With the price of hydro, water, gas, and city taxes, most people who work the mcjobs that this town has, can not afford to even own a house, let alone rent one.
3/25/2014 3:10:59 PM
nvjgu says:
$16 a month x 40.000 people that's, lets see. That's 640k a month x 12 months = 7.5 million a year if I'm not mistaken. W0W, imagine if it was $17 a month. I'm shure glad I got $8 a month raise.
3/25/2014 3:24:58 PM
Realistic-rose says:
Good calculation, too bad Uniongas does not profit in any way from this!
3/25/2014 8:14:49 PM
tudor says:
That people are at all surprised by this is what is shocking. When the demand for newsprint dropped, so did the price. When oil refineries burned, the price went up. When cabbage patch dolls were the rage, the price inflated. When the demand for natural gas increases by a large margin the price is going to go up. It is how economies work. We do not have to like it but no one should be surprised by this development.

Natural gas prices have been incredibly low for years fortunately. With the winter we had it was inevitable. Look how much water has increased over the past few years.

People need to find ways to cope. I will be putting in a door in my basement to make my fireplace far more efficient by keeping the heat in a smaller space. I will make sure it is turned down at night when we are sleeping. Unfortunately the reality is we need to use less of all resources.

It seems our unwillingness to make change is at least a significant part of the problem.
3/25/2014 3:32:31 PM
livewire says:
As I said before the Ontario Energy Board is part of the Government and the hike will pass.
($16.00 + GST ) Have too bring some regular folks to voice their opinion on the Board for the average tax payers.
3/25/2014 3:35:10 PM
807daisy says:
Just to help with some perspective on the rates, take a look at the historical rates on the Union Gas website and you will find that the price of gas has changed but dramatically over the years - but I'd rather pay what we are paying now than what we were paying in 2008!
http://www.uniongas.com/residential/rates/summary.
3/25/2014 3:47:43 PM
thunderbaycouncel says:
People have to realize that we live in Ontario. We are one of the most taxed places in the whole world! literally the world! Everything will keep going up, never down. It cant. For every dollar i make 40c of it goes to taxes. Then with the 60c i have left over i pay more tax on that 60c than anywhere in Canada. So basically i make 40c of every dollar. Go Ontario!
3/25/2014 7:15:45 PM
Realistic-rose says:
I don't understand why everyone whines and complains about this, if you can't afford to pay your utility bills then maybe you should consider a move? Gas rates have been at an all time low for about four years now. Check out their historical rates on www.uniongas.com - this rate increase is minimal and the company won't profit from it. Get over it people call Uniongas and ask questions, educate yourselves and get energy saving tips! I am so sick of reading all this stuff when people just want to complain about things they don't know about, just call them if you want answers.
3/25/2014 8:20:39 PM
Eastender says:
I love your solution to those who find it difficult to pay their gas bill. They should just move? To where? Florida maybe?

Oh yeah,

checking out historical rates, that ought to satisfy me when my bill comes in, higher than ever

The company wont profit. Oh I feel better already!
I've been conserving energy all my life, and still I pay more now than ever.
So I'm gonna complain and whine till the cows come home, wether you like it or not!
3/27/2014 9:09:52 PM
margo12 says:
so if we have mild winter next year price goes back down and union gas will apply for a decrease, right?
3/25/2014 10:16:37 PM
Realistic-rose says:
Uniongas buys the gas at market price and bills you the same. Gas is commodity on the market so rates change every quarter. They go up or down. They pass cost on to you at what they buy it for, they don't profit! You were paying 8 cents last April!
3/26/2014 1:06:00 PM
Jack Frost says:
Are cold winters only now a new phenomenon ?!

The real truth is, pure corporate GREED and government TAXES, 'cause they can and always will !!

Many folks would call this nothing less than "lawful" EXTORTION or STRONG ARMING...
3/26/2014 1:09:53 PM
hotchoc says:
So it continues. Eastender states his bill is higher than ever which can only mean he has been paying gas bills for two years in the last 8 because our bills are still dramatically smaller than they were 8 years ago.

Repeated posts state the company is not making money on the increase because the increase is in the cost of the commodity. It does not prevent repeated postings on the same topic.

This site does a wonderful job of allowing people to comment on issues. it is to be commended for that. Unfortunately it also allows the continuation of a great deal of misinformation that some believe and repeat.

People need to become far more informed.
3/28/2014 7:14:27 AM
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