# Enbridge raising gas prices 40% in Ontario



## Compounding1 (May 13, 2012)

Anyone else shocked this got passed? When I saw the proposal I thought okay they asked for 40% but they'll likely give them 20%. Then they go ahead and pass 40%... Unbelievable! :hopelessness: And unless you have a lot invest in Enbridge I can't even see this being great for you because you'll probably end up paying more than the dividends and capital gains will make! 

/end rant


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## marina628 (Dec 14, 2010)

My gas use is probably the smaller part of the bill ,the delivery charges and taxes make up the bulk of it.


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## doctrine (Sep 30, 2011)

Is this really surprising? Nat gas went up by at least this much. And in other jurisdictions, like most places in Alberta, they had weekly increases so they've been paying higher rates for 4 months already - try complaining to them. Enbridge has no responsibility to subsidize your heating costs - they get a return of capital, but it's regulated and that goes both ways, as nat gas bills have been dropping steadily over the last 10 years.


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## Nemo2 (Mar 1, 2012)

marina628 said:


> My gas use is probably the smaller part of the bill ,the delivery charges and taxes make up the bulk of it.


This.


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## My Own Advisor (Sep 24, 2012)

Win, lose. I own Enbridge, I need to heat my home


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## AltaRed (Jun 8, 2009)

Actually the cost of gas is a straight pass-through of costs (gas feedstock and administrative cost of all customer accounts). ENB (like all regulated gas suppliers) negotiate the purchase of their gas from gas production companies and then re-sell to consumers. They have to break even on this over a period of rolling months (no subsidization and no profits putting dollars to their bottom line). 

In this particular case, gas supply prices went up quicker than they could be passed on to the consumer. This increase is based on the best estimate of gas supply costs going foward plus makeup for prior monthly deficits. ENB already knows what the rules are for regulated gas supplies, so when they put a case forward to the regulator for a particular price change, you can be assured the regulator will approve a number pretty close to the what ENB has asked for.


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## 6811 (Jan 1, 2013)

AltaRed said:


> Actually the cost of gas is a straight pass-through of costs (gas feedstock and administrative cost of all customer accounts). ENB (like all regulated gas suppliers) negotiate the purchase of their gas from gas production companies and then re-sell to consumers. They have to break even on this over a period of rolling months (no subsidization and no profits putting dollars to their bottom line).


So is this a case of what goes up will come down, when the supply crunch is over with?


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## carverman (Nov 8, 2010)

Compounding1 said:


> Anyone else shocked this got passed? When I saw the proposal I thought okay they asked for 40% but they'll likely give them 20%. Then they go ahead and pass 40%... Unbelievable! :hopelessness: And unless you have a lot invest in Enbridge I can't even see this being great for you because you'll probably end up paying more than the dividends and capital gains will make!
> 
> /end rant


Ontario Fiberals and Harper will be happy because as the rates go up, they collect more HST..so it's a win-win for Enbridge and the gov'ts.


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## carverman (Nov 8, 2010)

6811 said:


> So is this a case of what goes up will come down, when the supply crunch is over with?


It's based on the law of supply and demand and this winter the demand was greater than the supply at Enbridge's current contracted prices.
If you look at the chart below..you will see that the gas prices were unusually high between 2006 and 2008 and then came down in July 2009 
http://www.ontarioenergyboard.ca/oe...ural Gas Rates/Natural Gas Rates - Historical

so chances are the gas prices will come down again, during the summer, when houses are not being heated..but if we have another winter as cold as this past one..
all bets are off on futher increases.


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## hboy43 (May 10, 2009)

My heating costs are hedged -> trees.


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## Just a Guy (Mar 27, 2012)

I just paid a bill for power and water on one of my rentals for a vacant month...$98, only used $4 in electricity and $4 in water...the rest, more than 90% was services charges! rate riders, and other garbage...the hookup charges weren't even on it! that was the first bill. Probably totalled close to $200 for 1 month of no use.

There's a reason why some landlords don't register with the power companies and switch the power over...they just leave it between tenants, which the power companies hate.


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## crazyjackcsa (Aug 8, 2010)

I go through a craptonne of natural gas. In the area of 4000m3 a year. Ancient house and ancient boiler.My bill is way smaller than those on with propane, oil, or electrical. This year my gas bill will be around $1,300 for the year. My father's oil bill is about $750 a month in the winter.


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## OhGreatGuru (May 24, 2009)

Oh what short memories people have. From Apr. 2006 to Jan. 2009 the average OEB rate for Union Gas was 29.6 cents. Then gas prices collapsed and the average rate from Apr. 2009 to Jan 2014 has been 14 cents; and the Jan.2014 rate is 11.55 cents. Gas been underpriced for several years due to the state of the US economy and new shale gas production.


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## crazyjackcsa (Aug 8, 2010)

I remember. My bill was $2,000 and I was pricing new boilers. Payback was going to be 5-years. Now it's 10+.


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## Cal (Jun 17, 2009)

If I recall this increased gas pricing is only for a few months. ENB has used up their nat gas storage and needs to buy from elsewhere (at a greater price) so that we can continue to be supplied.


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## Addy (Mar 12, 2010)

Cal said:


> If I recall this increased gas pricing is only for a few months. ENB has used up their nat gas storage and needs to buy from elsewhere (at a greater price) so that we can continue to be supplied.


I didn't realize it was only for a limited time, the 40% increase. I guess we will be keeping out heat off as much as possible during those few months. Maybe heat with electric fin heaters we have for backup.


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## rikk (May 28, 2012)

Addy said:


> I didn't realize it was only for a limited time, the 40% increase. I guess we will be keeping out heat off as much as possible during those few months. Maybe heat with electric fin heaters we have for backup.


Unless your hydro is provided by gas turbines ... so let's see, hydro will be up 40% over the next few years, gas we're told will be up a temporary 40% (Enbridge cannot profit from the increase and so is just passing the cost along) ... my experience, temporary increases tend to stay there ... so, a 40% increase in gas to run the turbines plus an additional 40% hydro ... could turn out to be a heck of an increase for energy.

OT: And another small house was demolished on the street this week past, another older couple on pension just couldn't afford to stay in their house ...


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## HaroldCrump (Jun 10, 2009)

When hydro rates started going up precipitously since '09 and '10, many folks said, "well at least it is offset by falling heating costs".
So much for that theory....


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## Addy (Mar 12, 2010)

Time for my husband to study up on solar power and invest in a wood stove, although the cost of wood will rise surely.


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