If you're a Union Gas customer, there's a good chance you will soon pay less to heat your home.
Union Gas has applied for a rate increase to recover cap and trade costs next year but spokesperson Andrea Stass says the price of natural gas is dropping, and that will offset or reduce any cap and trade increases in the new year. Union Gas is also applying for a rate reduction because of falling natural gas prices that will take effect January 1 if approved.
Stass says residential customers will pay an extra $4 or $5 a year for carbon credits but that money will be offset or reduced because of cheaper natural gas prices.
"Union Gas is required to buy emission credits on behalf of our residential customers and business customers. That program has been in place for a year now and currently that cost is about $70 a year for a residential customer," says Stass.
If approved, it will be the second rate drop for Union Gas customers since natural gas prices started climbing in July of 2016. The numbers are not final yet and the Ontario Energy Board has the final say.
Stass says a possible merger between Union Gas and Enbridge Gas would also reduce bills.
"We believe that for customers that will actually mean a reduced cost of service. Bringing two utilities together, there's opportunities to generate efficiencies, which will actually translate into lower rates than they otherwise would be," Stass says.
The amalgamation would take place in January of 2019 if approved.
Stass reminds customers that bills will depend on the amount of gas used and how cold the winter will be.
"Even though we know that gas prices will be coming down in January, if it's cold, that could increase your gas costs. There are some tips on how you can reduce that through energy efficiency on uniongas.com," says Stass.