Enbridge Gas Distribution Adjusts Prices
TORONTO, ONTARIO--Enbridge Gas Distribution has received approval from the Ontario Energy Board to implement a new surcharge for all customers effective July 1, 2003. The amount of the surcharge will vary depending on whether customers buy their natural gas from the utility or a marketer/broker. For residential customers who buy their gas supply from a natural gas marketer or broker, the surcharge will be 5.0897 cents per cubic metre from July 1 to December 31, 2003. For the typical residential customer*, the surcharge will amount to a total of $58 during this period. The surcharge reflects the difference between this past winter's actual costs and the amount recovered through the delivery charge for ensuring there was enough supply of natural gas in the pipes to meet customers' needs, even on the coldest days of the year. For residential customers who buy their gas supply from Enbridge Gas Distribution, a regulated utility, the surcharge introduced in April will be adjusted to 6.7942 cents per cubic metre. It will be in place from July 1 to December 31, 2003. For the typical residential customer(1), the surcharge will amount to a total of $77 during this period. The surcharge includes: - the difference between the forecast price and the actual costs for natural gas. The cost to purchase gas supply this winter was higher than anticipated due to cold weather. This portion only applies to customers who buy their natural gas supply from Enbridge Gas Distribution; - the difference between this past winter's actual costs and the amount recovered through the delivery charge for ensuring there was enough supply of natural gas in the pipes to meet customers' needs, even on the coldest days of the year. Managing the volume of natural gas in the distribution system, or load balancing, is a service provided by Enbridge Gas Distribution. The forecast cost for this service is included as part of the delivery charge. If Enbridge Gas Distribution is under or over in its forecasts, it collects from or reimburses the difference to customers. Enbridge Gas Distribution does not earn a profit on this component of the delivery charge. The gas supply charge, delivery charge and the customer charge have not changed. The current Enbridge Gas Distribution gas supply charge is 26.65 cents per cubic metre. Natural gas continues to be the most efficient choice for home and water heating. Natural gas has been 46 per cent less expensive than electricity over the past five years.(2) Enbridge Gas Distribution delivers gas to about 1.6 million customers in its franchise area. Of those customers, slightly more than half buy their gas supply from the utility. The utility's remaining customers buy their gas supply directly from marketers. The gas supply charge for customers who buy their gas supply from natural gas marketers is based on their contracts. Please see the attached backgrounder for information about Enbridge Gas Distribution charges and gas supply options: http://www2.cdn-news.com/database/fax/2000/0630enb.pdf (1) Based on a typical residential customer who uses 3,064 cubic metres of natural gas a year for home and water heating. (2) Based on the annual bill for the typical residential customer who buys gas supply from the utility. Updated based on July 1, 2003 rates. -30-
For more information please contact:Enbridge Gas Distribution Inc.
Manager, Public and Government Affairs