SaskEnergy is proposing a 40 percent increase on natural gas bills this fall due to higher commodity prices and increasing delivery costs.
The Saskatchewan crown utility has applied for a rate hike to $10.21 per gigajoule from $6.57, effective Oct. 1. It also wants to increase basic monthly delivery charges starting Nov. 1.
SaskEnergy chief executive officer Doug Kelln said customers have been shielded from volatility in the gas market this year because of the company’s gas price management program.
Stored natural gas purchased at $9.33 per gj will supply about 40 percent of the province’s needs through the coming winter. That, along with future purchases at $11.75 through the winter and $9.78 next summer, produce a rate near $10.
Read Also
Canola oil transloading facility opens
DP World just opened its new canola oil transload facility at the Port of Vancouver. It can ship one million tonnes of the commodity per year.
Another 20 cents to cover the projected difference between what Sask-Energy pays to buy gas and what it charges its customers takes the rate to $10.21.
The province’s rate review panel will look at the request and make a recommendation to the provincial cabinet.
If it goes ahead, the increase would add $35 to the average residential monthly bill.
Higher use customers, defined as those using 3,950 cubic metres or more per year, would see a $49 per month increase for a total of 40.2 percent more.
The increase in delivery charges would see $2 per month added to residential bills and $2.55 per month added to farm bills.
Kelln urged customers to take advantage of programs that can help them cut their energy use.
These include the EnerGuide for Houses program, which provides grants up to $10,000 – split equally between the province and the federal government – to help homeowners retrofit their houses.
Information on the various programs is available at www.saskenergy.com.
