While inflation has hit Canadians in almost every aspect of life, it is also expected to impact Canadians heating their homes this winter. With temperatures dropping outside, Enbridge Gas will be introducing a 5-10% increase to their gas prices, effective this month.
Early in the morning on October 21, Pollution Probe’s Director of Energy and Energy Exchange, Richard Carlson, was interviewed on CTV’s Your Morning News, discussing the cause of natural gas prices rising and what can be done about it.
High natural gas prices this winter can be caulked up to two factors:
- Nearly half of Canada’s natural gas is imported from the US, so impacts on America’s natural gas supply will also affect Canada. The US has had an uncharacteristically dry and hot year, raising demand for natural gas on the domestic front which has impacted their export prices.
- The war in Ukraine has dramatically shifted the landscape of international trade, especially regarding natural gas and oil. Over 40 percent of the European Union’s natural gas came from Russia in 2021. However, the first seven months of 2022 saw a sharp decline in Russian natural gas exports to the EU compared to the same period last year. The EU has been forced to rely on other sources of natural gas, especially the US, to make up for this shortfall. As America uses its natural gas resources to meet Europe’s and Canada’s demands as well as their own, it has caused the overall price of natural gas to increase.
For Canadians to weather this storm of high natural gas prices, Carlson recommended making sure homes are as heat efficient as possible: ensure the home is properly insulated and fitted with insulated windows. The next step is to consider switching to a heat pump or hybrid heating system, this will reduce the gas you use and save you money. Other tips include installing a programmable thermostat that will automatically reduce your home’s temperature while you sleep or are away and having your furnace and heating system checked annually for leaks or other problems.