Enbridge Gas Distribution Inc. has applied for a 10-per-cent cut to natural gas rates in Ontario, just as the spring thaw cuts demand for the heating fuel.
The company says the cut could mean a savings of as much as $100 a year for clients, assuming the consumer spends $1,000 a year on natural gas and the reduced rate is averaged out over the entire period.
The rate decrease request comes after the company obtained a rate increase of about 6.5 per cent in January, which bumped clients’ bills by about $65 a year.
Enbridge resets natural gas rates every three months based on supply, demand and other market factors. Aside from the January increase, just in time for one of the coldest February months on record, the company has applied for and received three straight rate decreases, going back to April 2014.
The company does not make money off of the price of natural gas; it makes its profits in the transportation of the fuel.
