Natural gas delivery rates to rise in Manitoba, even as overall bills drop for residential customers

Manitoba's utility regulator has approved a 4.5 per cent hike on natural gas delivery rates, but Manitoba Hydro says most residential customers will see their overall gas bills decrease next month.

On Tuesday, the Public Utilities Board (PUB) approved a one-year hike of 4.5 per cent on natural gas transportation and distribution charges, beginningNov. 1.

The rate hike does not apply to gas commodity charges, which Hydro's Centra Gas subsidiary passes on to its customers at cost.

A decrease in commodity charges for most customers will result in the average homeowner's gas bills dropping anywhere from 0.3 per cent to 4.4 per cent, according to Scott Powell, Manitoba Hydro's communications director.

Largerindustrial customers might see rate increases of five per cent or more,Powell added.

The Centra Gas rate hike is the first in five years for the Hydro subsidiary.

Powell says Centra Gas was initially hamstrung by the COVID-19 pandemic, and then had to contend with a change of government and the introduction of a new provincial energy policy.

"We've seen those costs increase substantially over the years, but haven't seen an increase in charges to cover those costs," Powell said.

The PUB eventually ordered Centra Gas to apply for a delivery-charge hike, noting in its decision the Hydro subsidiary "urgently requires a general revenue increase" in order to protect its long-term financial health and spare customers the shock of a massive rate hike in the future.

Centra Gas actually requires a 14.1 per cent rate hike in order to cover its costs and return to its previously approved net income target of $3 million per year, the boardnoted.