Saskatchewan opposition parties say SaskEnergy’s request for a natural gas rate increase is an unjustifiable tax grab.
The crown corporation announced last week it asked the provincial government to approve a rate hike averaging 2.3 percent, which would increase the average home’s monthly bill by $1.25.
Rates had decreased by 11 percent over the past two years.
Tory MLA Dan D’Autremont said the request is unacceptable because SaskEnergy minister Eldon Lautermilch said just last month there would not be an increase.
In a crown corporations committee meeting Dec. 5, Lautermilch said gas prices were locked in until late 1997, and fluctuating prices “won’t be impacting our consumers for a period of time, based on the purchasing policy of the corporation.”
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
SaskEnergy president Ron Clark said the rate adjustment “is not related to higher gas costs or the extremely cold weather but is driven by increased transportation and storage costs of $3.7 million and increased depreciation expenses of $2.5 million.”
Tories and Liberals said this contradicts the statement of another SaskEnergy official who said two weeks ago an increase may be necessary because higher consumption due to low temperatures meant the corporation had to replace its reserves at higher prices.
Clark said Saskatchewan would still have the lowest residential natural gas rates in Canada.
The request is subject to a 45-day review period, and, if approved, the new rates would be effective April 1.
