Enbridge Gas Distribution Adjusts Prices
TORONTO, ONTARIO--(CCNMatthews - Mar 23, 2004) - Enbridge Gas Distribution has received approval from the Ontario Energy Board to adjust its prices effective April 1, 2004. The utility's gas supply charge will increase by approximately 14 per cent. The utility's new residential gas supply price will be 24.07 cents per cubic metre changing from 21.21 cents per cubic metre. The 2.2 cents per cubic metre surcharge that was implemented effective January 1, 2004 will end. This surcharge only applied to customers who buy the gas they use from the utility. The delivery charge will increase for all customers due to higher tolls to transport gas from Western Canada to Ontario. Change for Residential Customers The impact of the changes effective April 1, 2004 will vary based on the amount of gas a customer uses and whether the customer buys their natural gas from the utility or a natural gas marketer. For typical(1) residential customers who buy their gas supply from Enbridge Gas Distribution, a regulated utility, the gas supply and delivery charge changes will result in an increase of about $94 dollars on the total annual bill. For typical(1) residential customers who buy their gas supply from a natural gas marketer, the delivery charge change will result in an increase of about $6 on the annual bill. Natural gas continues to be the best energy choice for consumers. Over the past five years, natural gas has been on average about 43 per cent cheaper than electricity. (2) Enbridge Gas Distribution does not make a profit on the gas supply charge. The gas supply charge is established based on a 12-month market forecast. It is reviewed quarterly and, if necessary, adjusted. If there is a difference between the forecast prices charged to customers and the actual amount paid by the Company, the difference is collected from or reimbursed to customers. Enbridge Gas Distribution delivers gas to about 1.7 million customers in its franchise area. Of those customers, about 60 per cent buy their gas supply from the utility. About 40 per cent of the utility's customers buy their gas supply directly from marketers and the price they pay for the gas supply charge is based on the terms of their contracts. For more information about Enbridge Gas Distribution prices please see this backgrounder: http://www2.cdn-news.com/database/fax/2000/apr04back.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 a typical residential customer who buys gas from the utility. Updated based on annualized rates effective April 1, 2004. -30-
For more information please contact:
Enbridge Gas Distribution Inc.
Lisa McCarney
Manager, Media and External Relations
(416) 495-5662
Email: lisa.mccarney@enbridge.com
Website: www.enbridge.com