Regina small businesses 'feeling a crunch' as rising utility rates affect their bottom line

Saskatchewan small business owners are raising concerns about rising utility costs that could be detrimental to their bottom line.

In the last six months, utility bills at the Cure Kitchen and Bar in Regina have nearly doubled, according to co-owner Morgan Choquer.

Between rising utility rates and the growing cost of food supplies, Choquer said the restaurant had no choice but to increase prices.

“We’re feeling a crunch and it’s also being piled on by the lack of people willing to spend money,” she said.

“We do see a similar amount of people coming through the door, but I think people are spending less when they do come in.”

SaskPower increased its rates by four per cent last September. Rates went up another three per cent in the New Year. As of April 1, SaskPower is expected to increase rates by another four per cent.

SaskPower has previously said the increases are driven by the rising price of natural gas and the company’s’ expected reliance on the resource as coal is phased out.

About 93 per cent of Saskatchewan’s small businesses have seen energy costs increase despite their energy consumption staying about the same or decreasing, according to a recent survey from the Canadian Federation of Independent Business (CFIB)

“We’ve been hearing concerns from small business owners that these cost increases are going to further erode their bottom line and ultimately they’ll have no choice but to increase their prices and pass those costs onto consumers,” said Brianna Solberg, CFIB Director of Provincial Legislative Affairs.

Solberg said small businesses are still suffering from the effects of pandemic-related debt and stress.

The average small business owner in the province faces $63,000 in debt, according to CFIB survey results. About 12 per cent of small businesses are considering closing their doors.

“Small business owners thought that they were finished dealing with the pandemic after restrictions ended. However they are not in the clear yet and they are still very much trying to fight an uphill battle,” Solberg said.

The CFIB wrote a letter to the provincial government, urging officials to scrap the upcoming power rate increase in April.

The official opposition echoed those calls.

NDP MLA Aleana Young said this is not a policy issue and small businesses are not asking for a handout.

“They’re asking the government to stop adding taxes and costs everywhere that they can and to stop trying to balance their own books on the backs of entrepreneurs and households in Saskatchewan,” Young said.

The province stands behind the rate review panel’s recommendations for the 2022 and 2023 increases.

Prior to 2022, it had been more than four years since the last SaskPower rate increase, according to a statement from the provincial government.

“The Government of Saskatchewan does not take rate increases lightly. Without a rate increase, SaskPower’s financial pressures would grow over time, and damage the company’s ability to provide the safe, reliable power that our customers expect,” the statement read.