Enbridge Gas Distribution said Monday it has received approval from the Ontario Energy Board to adjust its gas prices upward on Jan. 1, increasing its gas supply charge from C19.095 cents per cubic meter to C21.254 cents per cubic meter. The subsidiary of Calgary-based Enbridge Inc. noted that due to costs that are directly linked to the price of the commodity, there is also a slight increase in its delivery charge.

The supply charge increase will boost a typical residential customer’s bill who buys natural gas from the utility by 6%, or approximately C$68 on the total annual bill. For a typical residential customer who buys natural gas from a marketer, the increase to the delivery charge will amount to approximately C$2 annually.

Enbridge Gas Distribution delivers gas to about 1.6 million customers in its franchise area. The company said that of those customers, slightly more than half choose to buy their gas supply from the utility. For customers who buy gas from a marketer, the price they pay for gas supply is based on their contracts.

“The price of natural gas is determined on an open market and fluctuates,” said Jim Schultz, president, Enbridge Gas Distribution. “Our prices are changed to reflect that. However, natural gas has been and continues to be less expensive than other options for heating and water heating.”

The company said research has shown that natural gas over the past five years has been on average more than 50% cheaper than electricity and 25% less expensive than oil for home and water heating. At today’s prices, Enbridge said gas is approximately 49% cheaper than electricity and 17% less expensive than oil for home and water heating.

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