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The price reduction is a direct result of the removal of cap-and-trade charges, which will help drive down the cost of natural gas.
Natural gas storage and distribution company Union Gas (TSX:UNG-D) has announced it will be reducing its natural gas rates for clients in Ontario effective October 1, 2018. The price reduction is a direct result of the removal of cap-and-trade charges, which will help drive down the cost of natural gas.
As quoted from the press release:
Union Gas has received approval from the Ontario Energy Board to decrease its rates for natural gas customers effective Oct. 1, 2018.
Residential1 customers who buy natural gas from Union Gas will see a C$73 decrease related to the removal of the cap-and-trade charges for natural gas effective Oct.1, 2018. This is partially offset by changes in the market price of natural gas supplies and transportation services, which are passed through to customers without mark-up, resulting in the following overall changes:
- Southern Ontario – a decrease of about C$47 a year, for an annual average bill of about C$707.
- North East Ontario – a decrease of C$26 a year, for an annual average bill of C$989.
- North West Ontario – a decrease of C$74 a year, for an annual average bill of C$839.
Business2 customers will see decreases ranging from C$1,098 to C$3,154 a year depending on location.
“The good news is Union Gas customers will see a decrease in their bills throughout the winter months,” remarked Sarah Van Der Paelt, vice-president, infranchise sales and marketing and customer care. “Natural gas continues to be the most cost-effective energy choice for homes and business, and our customers can save even more by leveraging Union Gas energy-efficiency rebate programs.”