CRFA speaks out on natural gas costs in New Brunswick

(Oct. 16/09)

The following was published in the Moncton Times & Transcript on Oct. 16, 2009:

Is there any end to Enbridge Gas's 'development period?'

Small and medium-sized businesses are the backbone of the New Brunswick economy.
In every corner of the province, there are food service business owners who are contributing to their communities through employment, service offerings and economic spin-offs.

The vast majority are independent businesses that have served customers in New Brunswick for years.
The Canadian Restaurant and Foodservices Association is the largest hospitality association in the country representing the owner/operators of 34, 000 restaurants, bars, pubs and caterers.

The food service industry is one of the only industries to provide economic activity and jobs in nearly every community of the province, both urban and rural.

The industry employs 24,000 residents of the province -- more than agriculture, mining and forestry combined.
A small business operator has many costs that need to be covered just to keep the doors open and meet payroll, particularly during these times of economic uncertainty.

One of the major costs is energy -- whether it is electricity, oil, propane or natural gas.

Many of our New Brunswick members chose natural gas as their energy choice over the last number of years because they believed it would be cheaper and more environmentally friendly.

As entrepreneurs, they signed up early and took a chance on the opportunity to use natural gas.

I would like to say that taking that chance has paid off, but the truth is many operators believe it hasn't.

Although the price of natural gas has declined significantly, our members are not seeing substantially lower prices due to the high distribution costs charged by Enbridge.

As bad as it is today, their biggest concern is the future.

Enbridge has built up a debt of $132 million.

Who is going to have to pay for this debt?

If our members have to pay, some of our businesses may be at risk.

The "development period" for Enbridge should end now.

The development period has allowed Enbridge to spend beyond their means, build debt on the backs of ratepayers and receive a guaranteed annual profit of 13 per cent for their investors.

That is certainly not something that small businesses are empowered to do.

The onus is on the New Brunswick Energy and Utilities Board (EUB) to end this situation.

The development period and its accompanying exponential accumulation of debt must come to an end. Our businesses and communities depend on it.

Luc Erjavec is the Atlantic Canadian vice president of the Canadian Restaurant and Foodservices Association in Halifax.