THUNDER BAY – Residential natural gas consumers in Northwestern Ontario can expect to pay on average an additional $71 a year, if a proposed rate-hike increase goes through.
Union Gas has applied to the Ontario Energy Board for a rate increase, which would come into effect on Jan. 1.
The company said the increase request is a reflection of expected higher costs it will have to pay in 2019 for natural gas from suppliers.
Market prices have increased significantly over the past two months, thanks in part to unseasonable cold weather across North America.
The company pointed out, in a release issued on Thursday to media, that the proposed increase follows four successive decreases in 2018, and prices would be up to five per cent lower for residences and seven per cent lower for businesses than they were a year ago.
According to figures included in the release, the average gas bill in Northwestern Ontario would rise $71 annually, to $910.
Northeastern Ontario would see a more modest residential increase of $53 a year, to $1,042, while southern Ontario bills would increase $55, to $762, on average.
Businesses on average can expect to pay $2,985 more per year in Northwestern Ontario, more than $1,100 more than their southern Ontario counterparts, who will pay about $1,808 a year for natural gas.
