SaskPower rate increases approved by provincial government

SaskPower bills are going up by four per cent this fall and another four per cent next year as the Crown corporation increases rates for the first time since 2018.

The Government of Saskatchewan accepted the recommendation by Saskatchewan’s Rate Review Panel. The average residential power bill will go up by about $5 starting Sept. 1, and another $5 starting next April 1.

The review panel recommended the increases July 11, and Thursday’s announcement from the government makes it official.

Don Morgan, the minister responsible for SaskPower, said the decision to hike rates wasn’t taken lightly.

“World events have caused a significant rise in the price of natural gas, and with 42 per cent of Saskatchewan’s electricity coming from natural gas-fuelled facilities, SaskPower requires additional revenue to maintain reliable operations,” Morgan said in a news release.

SaskPower is expected to become even more reliant on natural gas for power generation in coming years, as federal regulations require the elimination of coal-based power plants by 2030.

Rupen Pandya, the CEO of SaskPower, said the company tried to absorb the additional costs, but ultimately had to raise rates.

“In the four years since our last increase SaskPower has worked to find internal efficiencies, but at this time we require additional funding to continue to provide reliable and sustainable power,” Pandya said in a statement.

“We will continue to be transparent about our rate strategy and the need for regular, moderate increases.”

Saskatchewan NDP Leader Carla Beck has criticized the rate increases, saying people are already struggling with a rising cost of living.

“Now is certainly not the time to increase people’s power bills by eight per cent,” Beck said at a media event earlier this month.

“It’s the last thing that we should be doing when people are struggling to fill their tanks, or trying to make ends meet because of the crushing cost of living.”