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SaskEnergy proposing 5.4 per cent rate drop

If approved, SaskEnergy's rate changes would come into effect on November 1, 2015. File / Global News

REGINA – Heating your home could cost a bit less next winter.

SaskEnergy is proposing a rate adjustment that would save the average residential customer $53 over the course of a year, or about $4.40 per month.

An application before the Saskatchewan Rate Review Panel would reduce the commodity rate from $4.84/gigajoule (GJ) to $4.30/GJ, while increasing the basic monthly delivery rate by $1.75 to $20.60.

Executives for the Crown corporation stressed SaskEnergy pricing protects customers from large spikes in prices during the winter months by spreading more of the cost throughout the year.

“Having a rate change when (customers) are in a high consumption period, it’s very difficult for them to manage,” said Doug Kelln, president and CEO.

Customers saw their bills go up when commodity rates increased significantly last summer following a colder-than-average winter and a rise in natural gas prices.

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The delivery rate increase is needed for infrastructure initiatives worth $47.5 million in 2016, according to SaskEnergy.

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If approved, the rate changes would come into effect on November 1.

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