THUNDER BAY — Union Gas customers in northwestern Ontario are paying less for natural gas as a result of new rates effective Monday, October 1.
The company attributes most of the rate reduction to the Ontario government's removal of the carbon tax from natural gas bills.
The cap-and-trade carbon tax regulation was revoked by the newly-elected Progressive Conservative government in the summer.
For residential customers in the northwest, starting this month the cost of natural gas falls by roughly six dollars a month, or 74 dollars annually for an average bill.
Union Gas, in an announcement Monday, said residential customers across the province "will see a $73 decrease related to the removal of the cap-and-trade charges...This is partially offset by changes in the market price of natural gas supplies and transportation services, which are passed through to customers without mark-up."
This, it said, results in the following overall changes in three Union Gas service areas around the province:
- North West Ontario - a decrease of $74 a year, for an annual average bill of $839
- North East Ontario - a decrease of $26 a year, for an annual average bill of $989
- Southern Ontario - a decrease of about $47 a year, for an annual average bill of about $707
Customer rates are adjusted without mark-up each quarter to reflect changes in the market price of natural gas supplies.
