The province has announced the cancellation of SaskEnergy’s rate application for a five per cent rate increase for customers.
According to a release, the government of Saskatchewan has directed the Saskatchewan Rate Review Panel (SRRP) to cancel the rate application for delivery rate increases on July 1 of 2023 and 2024.
The Saskatchewan minister who is responsible for SaskEnergy said Saskatchewan has some of the most affordable utility rates in Canada, largely due to having the lowest auto insurance rates and natural gas commodity costs.
“I’ve directed the Saskatchewan Rate Review Panel to cancel the rate application for delivery rate increases from SaskEnergy,” Don Morgan said.
“We are committed to growth that works for everyone in our province, and this decision will help keep energy rates affordable for Saskatchewan residents.”
Total utility costs for 2022-23 and 2023-24 are expected to be the second lowest among all provinces.
“We watched commodity prices go up and down significantly in the last year or two and they’re down at a lower level now,” said Morgan. “But we think it’s appropriate just to maintain some stability right now.”
In a statement on its website, the Canadian Federation of Independent Business (CFIB) said it has been calling on the province to provide cost relief by stopping further SaskPower or SaskEnergy rate increases.
“This is a positive step toward mitigating cost pressures, and welcome news to the province’s small businesses,” stated the CFIB. “Our latest member survey data indicates that scrapping energy rate increases is a much-needed measure to help get small businesses back on track.”