SaskEnergy has applied to the Saskatchewan Rate Review Panel to increase its commodity rate, which would continue to be the lowest in Western Canada and the second lowest in the country.
The proposed commodity rate of $3.15/gigajoule (GJ), up from $2.58/GJ, would increase the average residential customer’s bill by $5.65 per month. SaskEnergy’s commodity rate is a pass-through of market costs, with no profit or loss earned.
“Natural gas prices in the open market have essentially doubled since SaskEnergy decreased the commodity rate in 2019. Increased natural gas demand for power generation coupled with higher liquefied natural gas exports are contributing to increased commodity prices,” said Ken From, President and Chief Executive Officer, SaskEnergy.
“While this proposed rate adjustment reflects higher natural gas prices, SaskEnergy will remain competitive with other Canadian jurisdictions and will continue to provide affordable, stable natural gas rates for our customers.”
Currently, SaskEnergy offers its lowest commodity rate in more than 20 years. The proposed adjustment would be the Corporation’s first commodity rate increase since 2014, following four decreases.
If approved, the new rate would take effect November 1, 2021. Additional information on the rate review process, including a full copy of SaskEnergy’s commodity rate application, will be available on the Saskatchewan Rate Review Panel website.
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