THUNDER BAY — A decline in natural gas inventory across North America and an increase in the federal carbon charge will contribute to an anticipated hike in residential gas bills this spring.
Enbridge Gas is applying to the Ontario Energy Board for an increase in the gas commodity charge to reflect changes in market prices, effective April 1.
The federal carbon charge is also set to go up on April 1.
The company said the overall impact for customers in the city is a potential $136 increase to an annual bill, or an average hike of 12 per cent.
Under OEB regulations, Enbridge 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.
