Consumers especially seniors say they can't keep up with natural gas prices as Enbridge seeks increase - Action News
Home WebMail Friday, November 22, 2024, 08:27 PM | Calgary | -11.3°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Toronto

Consumers especially seniors say they can't keep up with natural gas prices as Enbridge seeks increase

A Toronto-area woman says her gas bill is up $55 a month after Enbridge got approval from the Ontario Energy Board for a 18 to 23 per cent price increase that went into effect July 1.

War in Ukraine, rising demand pushing natural gas prices to historic highs, Enbridge says

Lynda McCarthy says her gas bill is up by $55 a month after Enbridge got the Ontario Energy Board's approval for an 18 to 23 per cent price increase that went into effect July 1. (Supplied by Lynda McCarthy)

Sitting on the back patio of her house, Lynda McCarthy carefully sifts through her neatly organized Enbridge Gas bills.

Living on a fixed income with her husband in Newcastle, Ont., a small community in Durham Region east of Toronto,the 73-year-oldkeeps a close eye on expenses and sticks to a strict budget.

"This was a total shock to get my Enbridgebill," she said.

That bill is up by $55 a month after Enbridgegot theOntario Energy Board's approval for an 18 to 23 per cent price increase that went into effect July 1.

"I thought there must be some mistake here. I called Enbridge. No, there was no mistake," said McCarthy, who moved with her husband into a smaller home to cut costs.

"You feel secure, you have a good budget and you are managing, and suddenly there are all these extra expenses."

'It's not a small amount'

Enbridge Gas saysthe war in Ukraine paired with increased global demand is pushing natural gasprices to historic highs.which the company saysit's expectingto continue for some time to come. That's why, Enbridge says, it's asking for another increase, which if approved would start Oct.1.

"Even if it's a small increase at this point, a few per centcould translate into another $100in the course of the year for an average consumer, so it's not a small amount," said Warren Mabee, an assistant professor of geographyandthe director of Queen's University'sInstitute for Energy and Environmental Policy.

"It's not something I think people will just shrug off."

McCarthy says she was shocked to receive the bill and thought it was a mistake until Enbridge told her otherwise. (Submitted by Lynda McCarthy)

He said although Russia invading Ukraine caused unpredictability in themarkets,volatility in the industry is predictable as Canada moves towardthe elimination of fossil fuelsin a bid to cutgreenhouse gasses.

"I think governments do need to pay more attention to that, we need to make this as smooth as possible for people as they go through the transition," Mabee said.

Peter Tabuns, the Ontario NDP's interim leader and its energy critic, said he's been hearing from constituents about the price of natural gas going up on top of other increases in the cost of living. He said the Ontario government should compel Enbridgeto do more to help consumers.

"The government can direct Enbridge to put a lot more money into conservation energy programs to help customers," Tabuns said.

"They should also be looking very seriously right now at a program for relief for particularly low income consumers who are going to have the hardest time making sure they can eat and heat through this winter."

Enbridge's rate mitigation plan

In a statement to CBC Toronto, Ontario'sMinistry of Energy saidthe government asked both the Ontario Energy Board and Enbridge Gas last winterto "employ all of the tools at their disposal to mitigate the impact of rising global energy prices for Ontarians."

When the Ontario Energy Board approved natural gas prices in July, it also included a rate mitigation plan proposed by Enbridge that protects customers from the full impact of global price increases, the ministry's statement says.

Enbridgeoffers incentives to make homes more energy efficient, like an upgrade to insulation, air sealing, new water heaters and windows.

Low-income households can also apply for some relief through the low-income energy assistance program.

In a statement to CBC News, Enbridge said it moderated the market price impacts for customers by deferring a portion of the natural gas market price increases for the October 2021, January 2022, April 2022 and July 2022 quarterly rate adjustments.

But that doesn't ease the worry for McCarthy, who will pay an extra $600 this year on her natural gas bill..

"I think we may be in trouble in the future, there is just two of us little old gray haired people" she said.