The Saskatchewan government has approved changes to natural gas rates that will result in lower monthly bills for homeowners.
SaskEnergy had applied to increase its delivery service by an average of 4.5 per cent, and decrease its commodity rate 14 per cent to $4.30 a gigajoule, starting Nov. 1.
However, in a news release Wednesday, the province announced the changes will now come into effect Jan. 1. The average residential customer will save $4.42 a month or $53 annually.
The government says it delayed the changes because the outstanding balance in SaskEnergy’s gas cost variance account will not be fully recovered until the new year. The account was $34 million in deficit after severe winter weather in 2013 and 2014.
When it applied for the rate changes this spring, SaskEnergy expected the account to be down to at least $5 million by Nov. 1., but more than double that amount currently remains.
“SaskEnergy requires a two month extension to continue repaying this account as less natural gas has been used by customers due to warmer than average weather in the spring and fall of 2015,” Jim Reiter, the minister responsible for SaskEnergy, said in the release.
Reiter noted that SaskEnergy will still offer the lowest residential delivery rates of any natural gas utility in Canada.
