Natural gas rates are going up April 1 for customers in Ontario, particularly for those served by Union Gas.
The Canadian Press is reporting that the Ontario Energy Board approved a rate increase for Union Gas customers and those who heat their homes in Northern Ontario will see the biggest increase. Union Gas customers can expect a jump of $50.30 a year or $4.19 a month on top of the new carbon tax of $5 a month on average that was added to the bills in January as part of the Wynne government’s cap and trade.
Those living in Southern Ontario will see the smallest jump of just $20.20 a year.
In its decision the OEB says the large increases are mostly due to previous credits expiring.
It says that in the case of “exceptionally large rate increases” the OEB can consider some rate mitigation measures, but in this case the threshold was not met.
Other natural gas providers are also upping their rates though Union Gas customers are faced with the bigger increases.
The OEB says, “despite these rate changes, overall, customers are still paying significantly less than they were at peak periods in 2009 and 2014, when natural gas costs were higher in Ontario due to factors including high market prices and unusually cold weather.”
with files from Canadian Press