Saskatchewan’s Rate Review Panel is recommending a significant reduction in what SaskEnergy customers pay for natural gas.
The panel has recommended to the Wall government the rate decrease from $5.21 per gigajoule to $4.55. The lowered rate reflects lower gas costs projected in the next 12 months, and would also clear any balance projected in SaskEnergy’s gas cost variance account. The moved doesn’t come without a warning though.
“A SaskEnergy rate reduction for this year is no guarantee that customers won’t face substantial increases in subsequent years,” notes the report. “Industry observers view current gas price levels as being relatively low from an historical perspective and anticipate higher rates in the years ahead.”
The rate reduction still needs to be approved by cabinet.
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