SaskEnergy is applying to the Saskatchewan Rate Review Panel (SRRP) for adjustments to its commodity and delivery service rates.
On June 29, 2023, SaskEnergy will submit a proposal to the SRRP for a 22.1 per cent decrease to the commodity rate, dropping it from $4.20 to $3.30 per gigajoule. At the same time, SaskEnergy will also bring forward a proposal for the SRRP to consider a five per cent delivery service rate increase. The combined commodity and delivery service rate adjustments will result in an overall bill decrease of approximately $5.66/month ($68 per year) for the average residential customer.
If approved, the overall bill decrease will take effect on October 1, 2023.
“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,” Minister Responsible for SaskEnergy Don Morgan said.
“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.”
SaskEnergy charges two rates – the commodity rate and the delivery service rate. SaskEnergy passes the cost to buy natural gas from the market on to customers, with no profit earned or loss incurred by SaskEnergy. The delivery rate supports continued investment in the system to ensure safe and reliable service to customers.
On the commodity side, SaskEnergy uses a hedging strategy that locks in the commodity price of natural gas for purchase in the future. This strategy shields customers from the extremes of 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. “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.”
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.