Saskatchewan residents can expect to see higher natural gas bills starting in November.
The province now approved SaskEnergy’s request to increase its natural gas rate, which will be the first increase in seven years after four consecutive decreases.
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Starting November 1, the commodity rate will increase to $ 3.20 / gigajoule (GJ) from $ 2,575 / GJ:
- The average residential customer’s natural gas bill is expected to increase about 9.2 percent or $ 6 per month.
- Average business customers can expect an increase of around 13 percent to 16 percent, which should translate to around $ 30 to $ 393 per month, based on current spending.
- For smaller industrial customers, the increase is projected to be around 19 percent or $ 1,625 per month.
SaskEnergy requested the increase in September after market prices essentially doubled in 2020.
SaskEnergy gets approval to raise natural gas rates
After a public consultation, the Saskatchewan Rate Review Panel recommended that the provincial government approve the request.
“SaskEnergy’s raw materials rate increase is a reflection of the significant increase in natural gas prices. Canada’s gas utilities face the same challenge, ”said Ken From, president and CEO of SaskEnergy.
“Our clients want predictable and stable rates, especially during the cold winter months. SaskEnergy’s pricing management strategy enables us to meet this expectation and offer customers the lowest commodity rate in the country. “
SaskEnergy also clarified that the Canadian government’s separately set carbon tax charge does not affect rates. That charge is based on the amount of natural gas delivered to a customer.
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The commodity rate refers to a pass-through of costs to buy natural gas on the market. SaskEnergy does not make a profit or loss from the sale of the product.
“We can manage the risk,” says the Saskatchewan energy minister.
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