Provincial government approves SaskEnergy bill decrease for October 1, 2023
September 14, 2023, 9:41 am
Going into the winter season, SaskEnergy customers will be paying less on their monthly natural gas bills.
The Government of Saskatchewan has approved SaskEnergy's commodity rate decrease of 24.5 per cent, bringing it from $4.20 per gigajoule (GJ) to $3.20/GJ, as well as its five per cent delivery service rate increase.
Effective October 1, 2023, this combined rate adjustment will result in an overall bill decrease of nearly eight per cent or $6.52 per month for the average residential customer.
"Affordability is front and centre in all utility rate decisions in Saskatchewan," Minister Responsible for SaskEnergy Dustin Duncan said. "SaskEnergy has done solid work on managing fluctuating markets by using its hedging program to lock in natural gas at beneficial prices. That hedging strategy provides price stability and shields customers from the extremes of market volatility."
SaskEnergy bills are a combination of two rates - the commodity rate and the delivery service rate. The commodity rate is set on a cost-recovery basis, reflecting the market price of natural gas, with no profit or loss earned or incurred by SaskEnergy. The delivery service rate supports planned investment in system integrity and safety efforts of about $50 million annually, as well as investment in the growing communities of Saskatchewan.
"We have a responsibility to provide affordable service to our customers while also investing in the maintenance and growth of our system," SaskEnergy President and CEO Mark Guillet said. "This rate adjustment allows us to provide lower bills for customers while also addressing inflationary pressures we have been managing, such as rising fuel and operating expenses."
In June, SaskEnergy applied to the Saskatchewan Rate Review Panel (SRRP) for a combined rate adjustment. After analysis of the application, the SRRP recommended that the provincial government approve a commodity rate reduction and delivery service rate increase.