Wednesday, October 18, 2000 Rate hike adds 45% to natural gas bill

By PHILIP LEE-SHANOK, TORONTO SUN Homeowners better brace for a burning sensation when they open this month's gas bill.

Canada's largest natural gas provider, Enbridge Consumers Gas, received the go-ahead from the Ontario Energy Board to hike prices effective Oct. 1.

The company said its 1.5 million customers should receive bills with the new rate by the end of the month.

The hike will add 45% -- roughly $430 -- to the average household's heating bill over last year.

Enbridge spokesman Mike Campbell said yesterday the increase reflects what the company pays its suppliers and, like any commodity, gas price is affected by the law of supply and demand.

At this time last year, natural gas cost 10.33 cents per cubic metre. Today, it's 20.75 cents per cubic metre.

"It's roughly double what it was at this date last year," he said.

It does not translate into additional profits for Enbridge, Campbell said, and venting anger at Enbridge would be akin to "blaming the corner grocery store for the high price of oranges after a cold snap in Florida."

Marie Rounding of the Canadian Gas Association said local distribution companies can't do anything about rising natural gas prices.

"Our people just deliver the gas. They aren't allowed by regulation to make any money on it," she said. "Utilities pass the price they pay directly to customers, with no markup."

The real cause is North American demand for gas -- still relatively cheap and abundant -- while drilling has been down due to the low market price, resulting in a lower supply of gas.

http://www.canoe.ca/TorontoNews/ts.ts-10-18-0008.html

-- Martin Thompson (mthom1927@aol.com), October 18, 2000