SaskEnergy upping the cost of natural gas for first time since 2013

By MEDICINE HAT NEWS on October 29, 2021.

https://www.medicinehatnews.com@MedicineHatNews

The price of natural gas delivered to homes and businesses in Saskatchewan is rising for the first time in seven years.

Next week the commodity price will rise by about 52 cents to $3.20 per gigajoule, the Crown utility provider, SaskEnergy, announced Oct. 22.

That change, approved by province’s rate review panel, marks the first hike since 2013. Since then the rate, which is set annually, has been lowered four times.

Officials say the change is due to the rise in natural gas market prices and that SaskEnergy does not expect to earn a profit on the commodity charge.

“Gas utilities across Canada are facing the same challenges,” said Ken From, CEO of SaskEnergy. The change could result in an addition $6 per month on bills on average.

Prices in Alberta, which has a deregulated market, are set by companies and approved by the Alberta Utilities Commission.

The City of Medicine Hat sets its monthly floating rate at the average of prices offered by major distributors Apex and Direct Energy.

The local city price was $4.03 per gigajoule in October, but was as low as $2.63 last winter. The city’s 2021 fixed rate for natural gas is $3.50.