Natural gas rates are going up in Saskatchewan.
The Saskatchewan Rate Review Panel (SRRP) said Wednesday it has approved SaskEnergy’s application to increase its natural gas commodity rate as of Nov. 1.
On average, residential customers will see an increase of $74 per year; small commercial customers $361; and large commercial customers $4,713.
SaskEnergy said that natural gas prices on the open market have doubled since 2019 and that it needed the increase to recover the higher forward costs of gas from Nov. 1 to Oct. 31, 2023.
The cost of providing natural gas to consumers this coming year is forecast to be higher than the current rate of 9.98 cents per cubic metre ($2.575 GJ).
“Increased natural gas demand for power generation, coupled with higher liquefied natural gas exports, are contributing to increased commodity prices,” said Ken From, SaskEnergy’s president and CEO, last month.
“While this proposed rate adjustment reflects higher natural gas prices, SaskEnergy will remain competitive with other Canadian jurisdictions and will continue to provide affordable, stable natural gas rates for our customers.”
The SRRP said its recommendation is consistent with the analysis and recommendation made by the panel’s independent technical experts.
The panel also reviewed the application and heard from the public in making its decision.
SaskEnergy said this is the first rate increase for customers in seven years.
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