Enbridge seeks huge hike in delivery rate

The cost of natural gas is going down, but Enbridge Gas New Brunswick has applied for huge rate increases on the delivery portion of its bills.

If approved, residential customers would see their delivery fees rise by as much as 27 per cent. The largest commercial, institutional and industrial customers would see delivery costs jump by 180 per cent.

Delivery is the biggest part of residential monthly bills and residential customers would pay between $210 and $250 more per year. Commercial customers could pay millions more. 

The New Brunswick Energy and Utilities Board must approve the proposed hikes. If they go ahead, they would take effect April 1.

Hike to cover infrastructure costs

David Charleson, Enbridge's general manager, said the company needs the increase to recover infrastructure costs.

"Enbridge Gas New Brunswick is still not able to recover all of its operating costs through the rates that it charges," he said.  

Charleson acknowledged natural gas fuel prices are down. However, he said Enbridge links its delivery rates to the cost of alternate sources of energy and home heating oil prices have just gone up.

Irving's Atlantic Wallboard plant is one of Enbridge's large industrial customers. It would face $1.3 million a year in additional delivery costs. Mary Keith, vice-president for parent company JD Irving Ltd, said the increase should not be approved.

"It's not sustainable. I think it's time that the EUB held Enbridge to account for its bad performance. It's time that natural gas became competitive in New Brunswick," she said.