Enbridge Awaits Rate Change Approval from Energy and Utilities Board
FREDERICTON–Enbridge Gas New Brunswick is hoping to have its application to change distribution rates for its natural gas customers approved by the New Brunswick Energy and Utilities Board (EUB) this week.
The application, submitted on December 21 of last year, was part of an annual process during which proposals are brought to the EUB based on reviews of financial performance and rates. This year’s application by Enbridge proposes to lower the rates of natural gas distribution for commercial consumers and raise it for residential customers.
Since natural gas bills are calculated with the cost of distribution and the cost of the gas itself separate, Enbridge maintains that residential customers will not see much of a change as the price of gas itself has decreased.
Enbridge predicts small and mid-sized commercial customers to see their natural gas rates decrease by 15.7 per cent, large commercial customer rates to decrease by 10.4 per cent and large industrial commercial rates to decrease by 10.8 per cent.
According to Enbridge, the cost of operating the public utility are decreasing for the second year in a row. They credit this decrease in cost to prudent management through controlling and reducing expenses.
The rate change process comes at a time when Enbridge is struggling to stay competitive against lower cost propane for commercial customers. The proposed rate changes for commercial customers aim to keep this business and attract others.
Enbridge maintains that residential customers are still expected see 20 per cent in savings compared to electricity.