Saskatchewan looks to significantly raise consumer cost for natural gas

By MEDICINE HAT NEWS on July 13, 2022.

https://www.medicinehatnews.com@MedicineHatNews

Natural gas rates in Saskatchewan could rise almost 17 per cent next month, according to a proposal by Crown utility provider SaskEnergy.

The one-year commodity and three-year delivery charge report would also call for increases of about 3 per cent in 2023 and 2024.

SaskEnergy bills customers at cost for commodity rates which have risen steeply across Western Canada this year, blended with delivery charges.

“Following the sharp rise in natural gas prices in 2022, some utilities across Canada have implemented commodity rates of more than $8 per gigajoule, which is almost double what we are proposing,” said SaskEnergy CEO Mark Guillet in a release. “Our hedging strategy has allowed SaskEnergy to propose a commodity rate of $4.20 per gigajoule, which is much lower than the market price of natural gas. Without this strategy, SaskEnergy would need a commodity rate of at least $6 per gigajoule.”

The increase would cost the average customer about $12 per month, then an additional $2.50 per month starting in June of consecutive years.

The proposal is now before the Saskatchewan Rate Review panel, which previously allowed gas fee increases in 2019 and 2014.

This week the panel approved a 4 per cent increase in SaskPower electricity charges in each of the next two years.