Natural gas rates will be going up just as a promised major reduction in hydro costs kicks in next month.

The Ontario Energy Board has approved a rate hike for Union Gas effective Saturday.

Average bills for Union Gas customers in the North East will go up about $40 a year.

The province’s Fair Energy Act, involving a 25 per cent reduction in hydro costs, comes into effect in July.

(With files from The Canadian Press)

Filed under: Natural gas bills