Alberta dealer wants to raise natural gas price

 

EDMONTON (CBC) - The province's largest natural gas dealer wants to boost the price of natural gas by about $3 a gigajoule next month, which would almost double the average energy bill. If approved by the Energy and Utilities Board, consumers would see the price increase to $8.28 from $5.19 in October. However, a $2.50 a gigajoule rebate from the province kicks in when the price climbs above $7.51 a gigajoule. Gary Newcombe, spokesman for Direct Energy, which owns ATCO's retail division, says the price increase reflects the actual cost of gas. "What we've seen so far is some hurricane damage down on the Gulf Coast, which has decreased productive capability down there by about 2.3 billion cubic feet a day. It's also set by continental weather patterns and, basically, analysts' views of any future trends in the gas market," Newcombe said of the price adjustment. Last fall, the province introduced natural gas rebates that kick in once the price rises above $5.50 a gigajoule, but only if two of the three utilities are charging above that mark. Only people with a gas meter are eligible for the rebate, which is applied to their bill.

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