It’s time to open the blinds and turn off the lights as natural gas bills are set to rise next month.
Alana Johnson is the director of strategic communications for SaskEnergy, and said they filed a proposal with the Rate Review Panel for an increase.
They’re looking to increase their commodity rate from $3.20 per gigajoule to $4.20 per gigajoule, as well as a three-year delivery rate increase of eight per cent in the first year, then five per cent in the second and third years.
“The price of natural gas has increased significantly due to a decline in natural gas production and an increase in liquefied natural gas exports,” Johnson explained. “Another factor in the price changes could be the global conflicts and demand for gas.”
According to a release from SaskEnergy, they have been managing costs and limiting the extent of possible delivery rate increases through internal efficiencies such as business process changes, Crown collaboration, leveraging technology and mitigating operating and capital costs.
SaskEnergy also has a price risk management, or a hedging strategy, that allows them to maintain low commodity rates by locking in at current gas prices for the future.
“It’s just getting to a point where an adjustment is required,” Johnson said.
Residential customers of SaskEnergy will experience this impact of higher delivery rates starting August 1 of this year, at an average of $11.95 more per month.
The second increase will be approximately $2.43 per month effective on June 1, 2023, and the third increase will be approximately $2.53 per month effective June 1, 2024.
“We currently deliver the lowest rate in Canada and we anticipate continuing to do so after this rate increase,” Johnson assured.
SaskEnergy has multiple programs in place to help their customers become energy efficient, and folks are encouraged to visit their website for further information on how to keep their gas bills low.