Ellen Roseman
Toronto Star
January 31, 2001

The cost of heating your home is going up sharply because of a shortage of natural gas.

Instead of paying $175 in January, the average household will pay $225, says Ian MacLellan, vice-president of Energyshop.com, an Internet-based information and comparison service.

You will see an increase in your next bill even if you opted for equal monthly payments. Enbridge Consumers Gas is passing on the higher cost now rather than making a one- time adjustment at the end of the heating season.

Only those who signed long-term gas contracts will avoid the hit.

About 1 million out of 2.5 million Ontario households are covered by long-term contracts. Most are paying in the range of 15 cents a cubic metre, MacLellan says.

Enbridge raised its price to 24.4 cents on Jan. 1. Last week, it notified the Ontario Energy Board that it will apply for another rate increase for all customers not on a fixed-price contract.

Should you sign up for a long-term contract today? It depends on how long you think gas prices will stay high.

If you expect the shortage to ease soon, Sunoco Inc. is your best bet with a three-year fixed rate of 26.9 cents.

Otherwise, you can lock in a five-year rate with Enbridge Home Services at 26.7 cents, Direct Energy Marketing Ltd. at 28.9 cents or Ontario Energy Savings Corp. at 30.5 cents.

“My recommendation is don’t sign now,” says Tom Adams, executive director of Energy Probe, speaking at a seminar this week sponsored by Enbridge.

“Gas is a highly cyclical commodity and we’re at a historical peak. According to the current futures market, traders are expecting a 50 per cent drop within the next 15 months.”

Rather than going out on a limb to guess where gas prices are heading, there are cheaper and easier ways to save money.

I’m not talking about high-cost solutions, such as replacing your furnace or installing energy-efficient windows, but things you can do for $100 or less.

Here are top tips from Mac- Lellan and Enbridge vice- president Janet Holder:

• Set back the thermostat at night or when away from home. By lowering the temperature just 1 degree, you save 2 per cent of your annual heating bill. That’s an average $80 a year. 
• Buy a programmable thermostat this winter and you can get a $15 rebate from Enbridge or Union Gas. These devices cost $50 to $100. With the rebate, your payback is about 1 year. 
• Open the drapes when it’s sunny and close them at night. 
• Check for air leakage, which can cause 30 to 40 per cent of your home’s heat to be lost. Use a candle or feather to check for drafts around windows, doors and baseboards. Caulk or weatherstrip the cracks. 
• Seal electrical outlets and switches with foam gaskets. 
• Heating hot water makes up 30 per cent of your bill. Lower the temperature setting on the hot water tank. It’s probably higher than you need anyway. 
• Install low-flow shower heads and aerators on faucets. 
• Put new washers in dripping taps. 
• Insulate pipes leading from the hot water tank. Pipe insulation is precut and snaps into place. Put an insulating blanket on your hot water tank. 
• Wait till you have a full load of clothes or dishes to wash before starting the machines. Wash clothes in cold water whenever possible. 
• Clean or replace the furnace filter every three months during the heating season. Keep a log so you’ll know when it’s time. 
• Buy an alarm that lets you know when the filter needs replacing. You can order one for $9.99 (U.S.) from www.improvementscatalog.com. Search for FilterTone.

Enbridge has an energy-saving kit with 4.9 metres of weatherstripping, light switch and electric receptacle gaskets, the rebate coupon for a programmable thermostat and a candle to help you find air leaks and drafts.

The kits are available free from Enbridge stores and municipal offices.

Finally, the federal government will send out $250 cheques to households and $125 cheques to singles, starting this week. It’s part of the promised relief for heating expenses announced last fall.

You’ll get help if you’re eligible for the January, 2001, goods and services tax credit. Make sure the Canada Customs and Revenue Agency has your current mailing address so you get your cheque as quickly as possible.