(980 CJME file photo)

By CKOM News Staff

SaskEnergy looking to lower customers’ bills in October

Jun 28, 2023 | 9:32 AM

Homeowners in Saskatchewan could be getting some relief on their energy bills.

In a media release Wednesday, SaskEnergy announced it will apply Thursday to the Saskatchewan Rate Review Panel for adjustments to its commodity and delivery service rates.

The Crown corporation will seek a 22.1 per cent decrease to the commodity rate, dropping it from $4.20 per gigajoule to $3.30 per gigajoule. It also will seek a five per cent increase to the delivery service rate.

The utility said the combination will create an overall bill decrease of approximately $5.66 per month ($68 per year) for the average residential customer. If approved, the decrease would take effect on Oct. 1.

“Thanks to a drop in the market price of natural gas, as well as SaskEnergy’s continued focus on price risk management, SaskEnergy is able to cut the commodity rate for its customers,” Don Morgan, the minister responsible for SaskEnergy, said in the release.

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“SaskEnergy’s commitment to provide stable natural gas rates to the people and businesses of Saskatchewan helped shield customers from the volatile price fluctuations we saw in 2022, both across the country and the world.”

According to the release, the delivery rate “supports continued investment in the system to ensure safe and reliable service to customers.” The company said it passes the cost to buy natural gas on to customers, without earning any profit or incurring any loss.

On the commodity side, SaskEnergy said it uses a hedging strategy that locks in the price of natural gas for future purchases. The Crown said that helps protect customers from market volatility.

“While we’re committed to delivering strong financial results on behalf of the people of Saskatchewan, we also know it’s essential to keep the cost and delivery of natural gas affordable for our customers to heat their homes and run their businesses,” SaskEnergy president and CEO Mark Guillet said in the release.

“That’s why we’re submitting an updated rate proposal that will support us in continuing to deliver affordable, reliable service while also providing customers with an overall bill decrease.”