Enbridge has a new fight on its hands as Canada’s Competition Bureau officially launches an investigation into the gas giant over allegations the company is misleading customers about gas’s role in the energy transition.
Specifically, Enbridge has promoted new gas connections as the cheapest way for Ontarians to heat their homes, while calling natural gas “low carbon” and “clean energy.”
Climate scientists are clear that natural gas, which is primarily composed of methane, powerful greenhouse gasIt is a fossil fuel that must be phased out if the world is to limit the catastrophic impacts of climate change.
The advocacy organization Environmental Defense maintains that Enbridge’s claims cause real harm. In communities where Enbridge plans to expand, installing new gas lines and investing in new gas boilers and other appliances would cost consumers thousands of dollars more than switching to heat pumps over the life of the equipment, the organization argues. Expanding the gas grid will also further push away goals of reducing planet-warming greenhouse gas emissions by securing fossil fuel infrastructure that would last for decades.
“Enbridge’s dishonest marketing is tricking people into installing new gas connections and spending thousands of dollars on new gas boilers and other appliances by falsely claiming it is cheaper than heating with electricity, which is simply not true.” said Environmental Defense program director Keith Brooks. in a sentence. “It’s good that the Competition Bureau has agreed to investigate Enbridge.”
The initial complaint brought by Environmental Defense, the Ontario Clean Air Alliance, the Canadian Association of Environmental Physicians and a group of Ontario residents in September accuses Enbridge of falsely claiming that gas is the most cost-effective way to heat homes. Enbridge has made this claim online and in communities hoping to expand in an attempt to increase their customer base.
In a letter sent to residents of Scugog Island, a First Nations community in Ontario where Enbridge sought to expand service in 2021, the company said: “Compared to using electricity, propane or oil, switching to natural gas could save you up to 52 percent annually,” and gas is “the most economical way to run appliances.” Enbridge made similar claims to residents of North Bay, Saugeen First Nation, Fenelon Falls and others.
“For a long time, methane gas was the cheapest way to heat homes. However, electric heat pumps for cold climates are now much cheaper for consumers than gas heat pumps,” the complaint reads. citing evidence filed with the provincial energy regulator.
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In a statement, Jack Gibbons, president of the Ontario Clean Air Alliance, said heat pumps provide clean, affordable energy.
“People need to know that if they are about to install new heating and cooling equipment, they should go with a heat pump,” he said. “But Enbridge is misleading these people and trying to attract more Ontarians to gas. “It’s embarrassing and it should stop.”
Enbridge is officially under investigation by the Competition Bureau for allegedly misleading customers about the affordability and potential of natural gas in the energy transition.
Enbridge said Canadian National Observer is “committed to cooperating fully with the Competition Bureau” but declined to comment on the ongoing investigation.
The Competition Bureau investigation comes in the wake of the Ontario Energy Board (OEB) separately challenging Enbridge’s plans to manage the energy transition.
Last month, the OEB said it was not convinced by Enbridge’s plan to spread the cost of new gas infrastructure over 40 years and have existing customers pay the costs through higher rates. Instead, the OEB ordered developers to pay in advance for any new gas connections.
Ontario Energy Minister Todd Smith responded quickly, announcing the day after the decision that he was “extremely disappointed” and intended to introduce legislation to reverse the OEB order.