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Homeowners in Saskatchewan could be getting some relief on their energy bills.
On Wednesday, SaskEnergy announced it will apply Thursday to the Saskatchewan Rate Review Panel for adjustments to its commodity and delivery service rates.
The Crown corporation said it will be seeking a 22.1 per cent decrease to the commodity rate, dropping it from $4.20 per gigajoule to $3.30 per gigajoule. It also will be asking for a five per cent increase to the delivery service rate.
The utility said the combination will create an overall bill decrease of approximately $5.66 per month ($68 per year) for the average residential customer.
If approved, the decrease would take effect on Oct. 1.
“I think overall people worry about affordability in a general sense,” Don Morgan, the minister responsible for SaskEnergy, said during a media conference at the Saskatchewan Legislative Building.
“I think we want to take a cautious approach. I think the role of government should be to act as a cushion to absorb or to adjust, and we are hoping that overall, people will be pleased to see a reduction.”
It was only last year in August 2022 that SaskEnergy hiked rates. Morgan said it’s trying to avoid putting the government’s variant account into a deficit position.
“Thanks to a drop in the market price of natural gas, as well as SaskEnergy’s continued focus on price risk management, SaskEnergy is able to cut the commodity rate for its customers,” Morgan said in a media release.
“SaskEnergy’s commitment to provide stable natural gas rates to the people and businesses of Saskatchewan helped shield customers from the volatile price fluctuations we saw in 2022, both across the country and the world.”
According to the release, the delivery rate “supports continued investment in the system to ensure safe and reliable service to customers.” The company said it passes the cost to buy natural gas on to customers, without earning any profit or incurring any loss.
On the commodity side, SaskEnergy said it uses a hedging strategy that locks in the price of natural gas for future purchases. The Crown said that helps protect customers from market volatility.
“While we’re committed to delivering strong financial results on behalf of the people of Saskatchewan, we also know it’s essential to keep the cost and delivery of natural gas affordable for our customers to heat their homes and run their businesses,” SaskEnergy president and CEO Mark Guillet said in the release.
“That’s why we’re submitting an updated rate proposal that will support us in continuing to deliver affordable, reliable service while also providing customers with an overall bill decrease.”
