Here's why most SaskEnergy customers will see a bill decrease
SaskEnergy customers will see their monthly bills decrease by an average of $6.52 per month beginning Oct. 1, the province said in a news release.
The rate decrease comes after the provincial government said it approved SaskEnergy’s commodity rate decrease of 24.5 per cent along with a delivery service rate increase of five per cent.
“Affordability is front and centre in all utility rate decisions in Saskatchewan," minister responsible for SaskEnergy Dustin Duncan said in the release. "SaskEnergy has done solid work on managing fluctuating markets by using its hedging program to lock in natural gas at beneficial prices. That hedging strategy provides price stability and shields customers from the extremes of market volatility."
On a customer’s bill the commodity rate is the gas consumption charge.
According to the province, SaskEnergy bills are made up from two rates – the commodity rate and the delivery service rate.
The commodity rate is set on a cost-recovery basis, reflecting the market price of natural gas, the province said.
The approved commodity rate decrease will drop the consumption charge from $4.20 per gigajoule to $3.20 per gigajoule, the province said.
On Sept. 7 the Saskatchewan Rate Review Panel announced that it was recommending the commodity rate reduction and increase for the delivery service rate after SaskEnergy applied for a combined rate adjustment in June.
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