Enbridge natural gas price increase approved

TORONTO - Many Ontarians who rely on natural gas to heat their homes will find themselves shelling out a lot more.

Enbridge Gas Distribution Inc. says the Ontario Energy Board has approved new rates effective April 1.

The increase means nearly $400 over the next year for the average Enbridge customer, who normally would pay roughly $1,000 annually for natural gas.

Enbridge says the OEB's approval is on an interim basis while the board considers steps to smooth costs for customers.

Enbridge applied for the increase earlier this month, a few weeks after predicting that its massive storage capacity should mute any price increase.

But the utility says it was forced to buy more natural gas -- at a much higher cost -- than expected and it must recover those costs.

Enbridge says the full impact of the increase is not expected to be felt by most homeowners until next winter.

Other gas utilities in central Canada are expected to follow suit.