Financial Services for Everyone

Your heating costs could jump by $500 or more this year. Here’s how to stay warm while paying less

As natural gas prices across Ontario increased Oct. 1, Lina Mockus was prepared for the impact. The Toronto homeowner was proactive; she replaced her old natural gas boiler with a combination unit that provides both heat and hot water in January (a rental, like the old one) and had new, tightly sealed windows installed in February.

“I’m an environmentalist, so I’ve been trying to do whatever I can to reduce my ecological footprint and save money, too,” Mockus said.


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Rate increase

Enbridge Gas received approval from the Ontario Energy Board to raise rates approximately five per cent for Toronto area homeowners and eight per cent for those in other areas of Southwestern Ontario for the final quarter of 2022, adding $74 and $105, respectively, to the average homeowner’s bill. Compared to last year at this time, Toronto homeowners can expect to see a cumulative annual difference of $469, since natural gas rates have gone up quarterly; elsewhere in Southwestern Ontario, the cumulative annual difference will be about $417. Combined with the higher prices for groceries and gasoline, Ontarians are finding their budgets stretched.

Natural gas is traded as a commodity, explained Andrea Stass, an Enbridge spokesperson. With the war in Ukraine, more countries worldwide are competing for the North American supply, since they are not trading with Russia, another major vendor. Increased competition drives the price Enbridge pays for gas higher, affecting the rates it charges consumers.

“There is increased demand for United States natural gas as countries look toward North America as a secure supplier,” said Stass. “We get our gas from Alberta and the U.S. Luckily, North America does have plenty of supply and Ontario has one of the largest underground storage facilities, so relative to the market, we are able to keep prices low. That doesn’t make it easier for families facing rising costs on a lot of fronts.”

Ontario electricity rates will also make the move from summer to winter pricing on Nov. 1, according to OEB spokesperson Mary Ellen Beninger. Peak and mid-peak pricing hours vary from summer pricing to winter pricing. In the winter, peak hours are 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. Mid-peak hours are 11 a.m. to 5 p.m. Visit https://www.oeb.ca/consumer-information-and-protection/electricity-rates for more information.

Mockus realized about 10 to 15 per cent in energy savings from her new, windows and combination boiler/water heater that warms her radiators and faucets. It isn’t the first time she’s made changes to improve the energy efficiency of her home.

“I live in a house that is about 100 years old, and when I bought it, it was leaky and drafty with little insulation,” Mockus said.

She had an energy audit done about 10 years ago and tackled the easily reparable items first. Mockus used weather stripping to prevent drafts around her windows and doors and had her leaky chimney repaired. Next, she insulated her attic and improved the insulation in her basement.

“I did the basics back then and saw a reduction in heating bills,” she said.

Rebate programs

When Mockus decided it was time to replace the more-than-30-year-old windows, the installer gave her an estimate and informed her about the Canada Greener Homes Initiative. Under the federal program, homeowners can receive grants of up to $5,000 for undertaking retrofits that will save energy. The program requires an application, approval to participate, both pre- and post-retrofit Ener-Guide evaluations and completion of some of the suggested changes. In addition, rebates are available to defray the cost of the energy audits. Mockus paid about $780 for the pre- and post-installation audits. Both the Canada Greener Homes Initiative and Enbridge offer up to $600 in rebates for the Ener-Guide audits.

“I decided I might as well take advantage of it,” Mockus said. “The rebate depended on the difference in energy efficiency between the two audits.”

She also replaced her 17-year-old boiler, since she needed to make two changes to qualify for the rebate. While the federal rebate didn’t completely cover the cost of the changes and the audits, she received $1,700 back.

Enbridge also has a home efficiency rebate program separate from the federal government’s options, although it also requires pre- and post-retrofit energy home assessments. Each type of suggested retrofit done by a homeowner has a rebate price attached with up to $5,000 in rebates possible.

“Homeowners can participate in both programs but cannot receive duplicate rebates for the same qualifying energy efficiency improvements and energy assessments,” said Stass from Enbridge. In other words, you can apply for a federal rebate for new windows, but can’t ask Enbridge to reimburse you for the same upgrade.

Homeowners with limited incomes may be eligible for Enbridge’s Home Winterproofing Program, which offers free insulation, draft proofing and a smart thermostat to reduce energy costs up to 30 per cent. The Ontario Energy Board offers LEAP, the Low Income Energy Assistance Program for people who can’t pay their energy bills or are afraid of being disconnected. The City of Toronto has a similar Emergency Energy Fund (Call 647-727-8988.).

Easy fixes

When it comes to saving money on energy bills, there are a number of inexpensive things that can be done to make a difference in your home’s energy efficiency, said Simon Bernath, chief executive officer for furnaceprices.ca, an independent source of heating and cooling information.

“There are habits you can change and there are small investments with impact,” Bernath said. “For example, you can lower the temperature in your home a few degrees and wear a sweater. For every degree you lower the thermostat, you see one-to-three-per cent in savings.”

He also recommends changing your furnace filter every few months so it doesn’t work so hard to heat your home; keeping the heat registers open and clear; and closing the curtains at night when it’s coldest to keep the heat inside. A smart thermostat is also a good investment, since you keep the temperature low when you aren’t at home; a cellphone app allows you to control the temperature remotely.

“Rising energy prices are something we all have to deal with,” Bernath said. “There’s no putting off heating your home if you live in Canada. And while some of these suggestions may feel nebulous, over time, they can make a difference.”

Additional Energy Saving Tips

  • Keep your fireplace damper closed to prevent heat from escaping through the chimney.
  • Place caulking and weatherstripping around windows and doors to eliminate drafts.
  • During winter months, use heat-shrink plastic on windows to keep the heat in.
  • Prevent heat loss by using foam gaskets to insulate outlets and light switches.
  • Add insulation to your walls to improve comfort and efficiency and protect against moisture.
  • Schedule an annual furnace inspection with a qualified professional.

Source: Enbridge