Utility customers could see a sharp jump in their natural gas bills starting July 1.
As oil prices hit record highs on world markets, natural gas is going along for the ride.
Enbridge customers may face a 40 per cent increase in the gas commodity price and a 20 per cent increase in the total gas bill, says Malini Giridhar, director of energy policy and analysis for Enbridge Gas Distribution.
Union Gas will probably also raise its rates on July 1, said spokesperson Andrea Stass, pointing out that market prices have been going up since January.
Enbridge has 1.8 million customers in the GTA, the Niagara peninsula and Ottawa. Union Gas Ltd. has 1.3 million customers from just west of Toronto to Windsor and across eastern Ontario from Port Hope to Cornwall.
The average household currently pays about $1,400 a year for gas used to heat homes and water. A 20 per cent increase would add $280 to a household's annual bills – assuming gas prices stay at current levels into the fall and winter. More...