Heritage Gas seeks to offer discounts as it loses customers to propane

The Nova Scotia government made an 11th hour rule change Friday to allow provincial regulators to hear an application from Heritage Gas to lower some of its prices.

• Heritage Gas applies to lower some commercial rates by 64%

The natural gas distributor is trying to stem the tide of small and medium-sized business customers defecting to propane, which is 35 per cent cheaper than natural gas.

Heritage Gas is seeking permission to offer discounts, but that was not possible under current regulations.

"Government's action today does not determine the outcome of the application, it simply provides the board with the authority to consider it," Energy Minister Michel Samson said in a statement.

"The board will make its decision after reviewing the evidence and hearing from stakeholders in an open and transparent process."

UARB hearing Monday

The Nova Scotia Utility and Review Board will hold a hearing on Monday to consider the gas company`s request to lower some rates.

In its application, Heritage Gas says since the fall it has identified more than 250 commercial customers that have left the natural gas distribution system or are in the process of moving to an alternative energy source.

"This loss of customers is expected to result in a reduction in annual distribution revenue of approximately $3 million," the company said.

It says without offering discounts, the company could lose more than 500 customers in 2016 and another 750 over the next two years at a cost of $15 million per year.