Centra Gas OK’d to hike rates 17 per cent

Hey there, time traveller!
This article was published 26/10/2021 (1592 days ago), so information in it may no longer be current.

Rising gas prices that have slammed motorists at the pump are about to hit those who buy it to heat their homes.

The Public Utilities Board approved an application by Centra Gas to increase the primary rate by 17.1 per cent or $124 per year for a typical residential customer.

The increase is to take effect on Nov. 1, the rate-setting watchdog reported Tuesday. The hike won’t affect customers who have signed fixed-term, fixed-price contracts, with either Centra or a private broker, the board said.

Primary gas is sold on a cost-recovery basis without markup by the Crown corporation to Manitoba customers, the regulator said.

“The cost is driven by market rates for natural gas,” said Gloria Desorcy, Manitoba executive director of the Consumers Association Of Canada.

“Centra makes no profit on the sale of primary gas,” she said in an email. “The cost is simply passed on to consumers.”

The rate increase announced Tuesday is the quarterly interim primary gas rate, which is reviewed by the PUB every three months, she said. And 17 per cent is a “dramatic” increase, especially with winter approaching, she said.

“An increase of this magnitude has an impact on all consumers, particularly those with the most limited income,” she said.

“Heat is a necessity for life in this province. Consumers with the most limited income may find themselves in a position where they have to choose between necessities, such as heat, medication, food, and shelter,” Desorcy said.

She reminded consumers about Efficiency Manitoba, a Crown corporation that offers programs and rebates for consumers with a variety of income levels, to make households more energy efficient.

The NDP called on the Progressive Conservative government to offer Manitobans bigger Autopac rebates to offset rising prices.

“Life is getting too expensive for regular folks, NDP Leader Wab Kinew said Tuesday. “Gas prices are up nearly 25 per cent on the year, food prices are rising and hydro bills are increasing,” he said in an email.

“The PC government could help by offering bigger rebates on Autopac payments, but instead they spend their time backfilling cuts with public money and looking for ways to sneak Hydro increases into omnibus bills.”

carol.sanders@freepress.mb.ca

my-home