Introduced in the 2018-19 Provincial Budget the Municipal Surcharge Program directs SaskEnergy under The SaskEnergy Act to collect five per cent of natural gas sales from residents and businesses in participating municipalities and remit all funds collected to the municipality.
Opting-in or opting-out is at the discretion of each individual municipality. There is no profit or loss to SaskEnergy to administer this program.
Frequently Asked Questions
How does our municipality figure out how much we will receive back from the Municipal Surcharge Program?
The amounts remitted to municipalities vary each month depending on the volume of natural gas delivered to residents and, for smaller communities, the monthly municipal payment amounts can be very small (less than $100).
To approximate remittance to any given municipality, consider that an annual natural gas service cost for the average residential property is between $1200 to $1500 per year. Multiply this by the number of gas-receiving residents within the municipality then calculate five per cent.
FORMULA |
Average cost of natural gas usage in Sask per household (range: $1,200-$1,500) | Number of residential properties that uses natural gas in a sample municipality | Annual natural gas consumption cost for all SaskEnergy customers/residents in a sample municipality | Calculated 5% annual remittance for the Municipal Surcharge to sample municipality |
Sample Calculation |
$1,350 |
x 1,000 |
= 1,350,000 |
x 5% = $67,000 |
If there is a remittance passthrough to our municipality, under what circumstances would we choose not to opt-in?
As each municipality in Saskatchewan is unique, they are best positioned to determine whether to opt-in or opt-out of the Municipal Surcharge Program. Some of the considerations that may impact decision-making could include residential size, community buy-in, equity (such as the number of natural gas users verses those using other heating options), the presence of and size of businesses within the municipality. As well, municipalities may want to consider the impact that an additional five per cent energy cost -for the Municipal Surcharge- will have on their constituents.
What is the process our municipality must follow to inform SaskEnergy of our decision on whether we either opt-in or opt-out?
To make a change in status, municipalities are required to obtain a council resolution and submit it to SaskEnergy by the September 1, 2023, deadline. Required details will then be provided to SaskEnergy to effect the changes in monthly bills.
What if we do nothing?
If municipalities want to maintain their current status, there is no action required – those municipalities who are currently opted-in to receive the Municipal Surcharge would continue to do so; similarly, those municipalities who have a status of opted-out would remain opted-out of the program.
What is the deadline to change our status?
September 1, 2023, is the deadline for municipalities to submit a council resolution indicating the desired change in their status with regard to the Municipal Surcharge Program. The effective date of the status change will then commence in November 2023. Municipalities may see their first payments by the end of December.
What are the responsibilities for our municipality when opted-in to receive remittance from the Municipal Surcharge Program?
The utilization of the funds received through the Municipal Surcharge Program and the communication to residents of the use of those funds is at the discretion and the responsibility of each participating municipality.
How do we find out which municipalities in Saskatchewan have opted-in or opted-out?
SaskEnergy Regulations S-35.1 Reg1 provides a list of communities and their current status of participation in the Municipal Surcharge Program.
When is the next opportunity after this September for our municipality to change the status?
Changes in status require a regulatory amendment. There are a limited number of opportunities to make changes. Once the window closes for 2023, the next opportunity for municipalities to opt-in or opt-out of the Municipal Surcharge Program is expected to take place in the fall of 2029.
Who do we contact with questions or to submit a council resolution?
For questions on the collection and remittance of the surcharge and/or to submit your Council Resolution, contact Nicole Rich by email or by calling 1-306-535-8802.