Just in time for winter, the Saskatchewan government has approved natural gas rate increases.
Effective Oct. 1, heating bills will rise an average of 20 percent.
The change will add about $19.50 per month to the average residential bill.
Low-use farm customers will pay about $200 more per year, while average gas use on farms will cost about $300 more. High-use customers will pay about $700 more.
Crown corporations minister Ken Cheveldayoff said no one likes to see utility rate hikes, but SaskEnergy’s open market gas costs are going up.
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In July, SaskEnergy requested an increase that would have seen rates rise to $10.21 per gigajoule from $6.57.
The corporation amended its request to $8.71 in August after an updated forecast predicted open market prices wouldn’t be that high. The Saskatchewan Rate Review Panel approved that rate.
However, the rate ultimately approved by cabinet is even lower, at $8.51, after another price forecast was provided.
The review panel recommended the government mitigate some of the increase for low-income earners and examine ways to make energy conservation programs more affordable for them.
“As we have indicated before, our government prefers measures such as broad-based tax relief that benefit all Saskatchewan residents over rebate programs,” Cheveldayoff said.
SaskEnergy has also asked for a change to its delivery costs, which would add $2.55 per month to farm bills as of Nov. 1. The review panel is still considering that request.
