THUNDER BAY — A decline in natural gas inventory across North America is the key contributor to an anticipated hike in residential gas bills this spring.
Enbridge Gas is applying to the Ontario Energy Board for an increase to reflect changes in market prices, effective April 1.
If the application is approved, the average Thunder Bay homeowner's bill will go up by 12 per cent on an annual basis.
The federal carbon charge is also set to go up on April 1.
Enbridge said the overall impact for customers in the city will be a $136 increase in the annual cost of using natural gas.
Under OEB regulations, the company reviews its prices every quarter and adjusts them to reflect market changes, subject to OEB approval.
It said its pending request to the energy board is "Based on preliminary estimates, due to the cold weather, and the storage inventory trending downwards across North America (beyond Enbridge storage)."
The company explained that it buys natural gas in the summer when it is least expensive, and stores it underground in southwestern Ontario in one of the largest integrated natural gas storage facilities on the continent.
In the winter months, it draws on those reserves when natural gas on the open market would be more expensive.
