PUB approves 20% primary gas rate hike


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Natural gas prices for Manitobans have spiked sharply, just weeks after they had tumbled dramatically.

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Hey there, time traveller!
This article was published 27/04/2022 (396 days ago), so information in it may no longer be current.

Natural gas prices for Manitobans have spiked sharply, just weeks after they had tumbled dramatically.

The Public Utilities Board said in a statement Wednesday it had approved a 20.5 per cent increase in natural gas prices for customers who do not have fixed-term fixed-price contracts with Centra Gas or a private broker.

The PUB said the rate hike would cost the average residential customer about $150 more per year. It comes into effect May 1.

Primary Gas Billed Rate from Nov. 1, 2000 up to and including the proposed May 1, 2022 rate. The proposed increase is one of the largest single rate hikes since Feb. 2001 — however the proposed rate is still below rates from the decade prior to 2010. (Public Utilities Board)

Manitoba Hydro spokesman Bruce Owen said the jump represents the increased cost the utility pays for primary gas.

“Manitoba Hydro earns no profit on the sale of primary gas,” Owen said. “The price the utility pays is passed directly on to customers with no markup.

“Increasing natural gas prices are due to a colder-than-usual early spring season across much of North America which has reduced natural gas storage inventories in Canada and the United States.”

Owen noted what goes up can go down: the last primary gas rate change in February saw it drop 14.2 per cent, or about $121 per year for the average residence.

Natural gas prices are still below the market prices experienced during many of the years between 2000 and 2009 because of more current production, he said.

Public Utilities Board order on gas rate increase

Historic annual bill for typical residential customers as a result of Centra rate changes over the years. Prices have increased sharply since 2020, but the typical residential customer’s bill is still lower now than in the decade before 2010. (Public Utilities Board)
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