SaskEnergy proposes rate increases of $16.91 per month on average spread over 3 years
SaskEnergy has filed a one-year commodity and three-year delivery service rate increase with the Saskatchewan Rate Review Panel, that would see the average homeowner paying $16.91 more per month, if approved.
“The impact of the proposal on SaskEnergy’s residential customer bills is an increase, on average, of $11.95 per month (16.8 per cent) in year one, $2.43 per month (2.9 per cent) in year two, and $2.53 per month (3.0 per cent) in year three,” a news release said.
“No one likes to raise costs. I don’t like to get additional costs just like everyone else but we have a lot of our customers, this is going to be an impact on them absolutely but we have tried to maintain it as low as we possibly can,” said Mark Guillet, acting president of SaskEnergy.
The increase means the average homeowner will pay about $12 a month more this year. There is also a plan to increase rates in each of the following two years. Farmers will face the same percentage increase. The rate announcement comes a week after the Crown corporation reported an $82 million profit for 2021. The NDP is calling for consumer relief.
“This isn’t about a lack of funds. This is about a lack of willingness to do literally anything on affordability,” said NDP MLA Aleana Young.
Saskatchewan consumers will receive some help from the federal government through a scheduled carbon tax rebate.
“We recognize how important this affordability crunch is for people who are on fixed incomes and for lower income Canadians. We’ve taken measures,” said Federal Minister of Energy, Jonathan Wilkinson.
The provincial rate review panel has just approved an eight per cent rate increase for SaskPower customers, which will take effect over the fall and winter months. It has yet to consider SaskEnergy’s request.
If approved, the first increase would take effect on Aug. 1, the second would take effect on June 1, 2023 and the third on June 1, 2024.
The crown said if approved, this would be just its second commodity rate increase since 2014, with the last change to the delivery service rate in April 2019.
More information on SaskEnergy’s rate proposal can be read on the Saskatchewan Rate Review Panel Website.
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