Natural gas rates in Saskatchewan are going down just as SaskEnergy customers are turning thermostats up.
The Crown utility announced Sept. 28 it has requested the Saskatchewan Rate Review Panel approve a commodity rate decrease from $5.96 per gigajoule to $5.21.
It has also asked for an increase to its delivery charge, citing higher operating costs.
The net result will save farm customers about $106 per year, while residential customers would save about $54.
The new rate would take effect Nov. 1 and be the lowest in more than eight years.
“SaskEnergy’s new commodity rate is price protected against market volatility for the upcoming winter when Saskatchewan residents consume over 70 percent of their natural gas,” said chief executive officer Doug Kelln.
Once the review panel makes its recommendation, the provincial cabinet must approve the changes.
The opposition NDP said the rate decrease is inadequate and should have been retroactive to Sept. 1 to help farmers who have to dry grain.
SaskEnergy critic Trent Wotherspoon said during the six months since the last rate change, the Alberta market price of natural gas has been well below the Saskatchewan rate at between $2.65 and $3.46.
