Province approves first SaskEnergy natural gas rate increase in 7 years

Saskatchewan residents can anticipate to see greater natural gas payments beginning in November.

The province has now permitted SaskEnergy’s software to increase its natural gas commodity rate, which would be the first improve in seven years following 4 consecutive decreases.

Learn extra:
‘It’s going to be an expensive winter’ — Gas prices to push heating bills higher

Beginning Nov. 1, the commodity charge will improve to $3.20/gigajoule (GJ) from $2.575/GJ:

  • A mean residential buyer’s natural gas invoice is anticipated to extend by round 9.2 per cent or $6 per 30 days.
  • Common industrial clients can anticipate a rise of round 13 per cent to 16 per cent which ought to translate to round $30 to $393 per 30 days, primarily based on present spending.
  • For smaller industrial clients, the rise is projected to be round 19 per cent or $1,625 per 30 days.

SaskEnergy utilized for the rise in September after market costs primarily doubled in 2020.

Story continues under commercial

Learn extra:
SaskEnergy gets approval to hike natural gas rates

After public session, the Saskatchewan Rate Review Panel really helpful the provincial authorities approve the appliance.

“SaskEnergy’s commodity charge improve is a mirrored image of the numerous rise in pure fuel costs. Gasoline utilities throughout Canada are going through the identical problem,” stated Ken From, SaskEnergy president and CEO.

“Our clients need predictable and steady charges, particularly through the chilly winter months. SaskEnergy’s value administration technique permits us to ship on this expectation, and supply the bottom commodity charge within the nation to clients.”

SaskEnergy additionally clarified that the carbon tax cost is individually set by the Canadian authorities doesn’t have an effect on the charges. That cost relies on the quantity of pure fuel delivered to a buyer.

Learn extra:
U.S. worries about winter prices as global natural gas shortage nears borders

The commodity charge references a pass-through of the prices to buy pure fuel from the market. SaskEnergy doesn’t earn revenue or loss on the sale of the commodity.

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