Natural gas rates hiked by 16 per cent

canada.com Friday, March 21, 2003

VANCOUVER (CP) -- The B.C. Utilities Commission said Friday it has approved a B.C. Gas application for an increase in the rates it charges for natural gas.

The increase will add approximately 16 per cent to the typical residential customer's total gas bill, the commission said in a news release.

It estimated the rate hike will add $184 a year for a typical Vancouver-area home, $167 a year for a home in the B.C. Interior and $183 a year for a home in the Kootenay region of southeastern British Columbia.

The increase will take effect April 1.

Natural gas prices have risen substantially on the open market in the last six months because of heavy demand due to cold-weather heating requirements, the commission said.

Rising crude oil prices, spurred by civil disruption in Venezuela and uncertainty around the Middle East situation have also pushed up natural gas prices.

The B.C. Gas rate increase allows the utility to pass on its increased cost to consumers. The commodity price of gas makes up about two thirds of the typical residential gas bill.