Natural gas prices likely increasing by $9.57 per month
REGINA – Saskatchewan residents should expect to pay more for natural gas later this year.
SaskEnergy is applying to the Saskatchewan Rate Review Panel to increase the price of gas from $3.82 to $4.84/ Gigajoule. The crown corporation says residential customers will pay about $9.57 more per month.
An increase in demand from customers to heat homes and businesses during the past frigid winter is blamed for the hike.
President and Chief Executive Officer, Doug Kelln, says natural gas storage within North America is at an all-time low.
“The storage was needed to meet requirements and that storage was heavily drawn upon,” said Kelln.”That puts us in a position where that pricing says ‘well I guess prices can go lower because the cold is gone’. No, it’s restocking of that storage for next winter that’s creating the firmness of the pricing.”
SaskEnergy has not increased its rate since 2008.
If approved, the proposed rate would take effect July 1.