SaskEnergy is proposing a 5.4 per cent rate drop that would save residential customers an average of $53 annually on their heating bill.

However, the Crown-owned utility is also applying to increase its natural gas delivery service rate by $1.75 a month.

SaskEnergy says the increase is needed to help cover additional costs related to enhanced safety and integrity programs, and to continue providing reliable service.

Even with the proposed increase, SaskEnergy’s residential customers would still pay the lowest delivery costs in Canada.

If Saskatchewan’s rate review panel and the province approve the proposal, the changes would come into effect Nov. 1.