Cost of residential heating to rise 45%

By THANE BURNETT AND DAVID MILLER-- TORONTO SUN

Fuel woes will flow from the gas pump to the home front this winter, with most residential heating costs around Toronto rising a chilling 45%.

That means an average local family -- mom, dad, two kids and a 1,600-square-foot home -- will be paying $430 more than they did last year to keep the home fires burning.

"We'll see the highest prices ever," warned Calgary-based energy analyst, Wilfred Gobert.

"Like anything else, it's become an issue of supply and demand."

Officials for Enbridge Consumers Gas, who estimate 90% of homes in and around Toronto are heated by natural gas, say they know their customers will feel under siege when cold fronts begin to move in.

PRICE DOUBLED

"Believe me, we're empathetic," said Enbridge spokesman, Mike Campbell.

"We know the calls will come in ... but it's a North American issue. There's nothing we can do."

He added the commodity price of natural gas has virtually doubled over the last year. And healthy economic times may be to blame. Industry experts say strong Canadian and American economies have placed a demand on natural gas to generate electricity.

Suppliers like Enbridge hope the increase in prices will bring in new gas supplies, to stabilize prices. Their Web site points out they don't profit from increases in natural-gas commodity prices -- the customers are charged the same price Enbridge pays.

For those who count on home-heating oil, the increase won't be as dramatic. But it will probably cost more to keep warm this winter.

"We're likely to see somewhat higher prices for the first part of the season, but it won't be like the (natural gas) increase," said analyst Mike Ervin, who couldn't put a number to the increase.

Meanwhile, rising gas prices are already having a ripple effect on the trucking industry after a trailer manufacturer slashed 40 jobs at an Ontario plant yesterday.

Manac, one of the largest trailer producers in Canada, is stopping production at its Orangeville plant due to falling orders caused by the fuel crisis.

Oil prices hit a 10-year high of $36.45 a barrel yesterday morning -- 53 cents up on Friday's price. Union leaders were locked in talks yesterday over what action is needed by industry and governments to stop a strike by truckers at midnight Friday night.

http://www.canoe.ca/CNEWSGas/gas_sep19_sun.html

-- Martin Thompson (mthom1927@aol.com), September 20, 2000