SaskEnergy rate decrease approved, average bill to drop $6.52 per month

As the winter months approach, SaskEnergy is adjusting its rates to reduce gas bills in Saskatchewan.

The provincial government approved a commodity rate decrease of 24.5 per cent for the Crown energy company, which drops the rate from $4.20 per gigajoule to $3.20 per gigajoule as of Oct. 1.

The province also approved a five-per-cent hike to delivery service rates, but noted that the average customer’s bill will still be lower.

“Effective October 1, 2023, this combined rate adjustment will result in an overall bill decrease of nearly eight per cent or $6.52 per month for the average residential customer,” the provincial government said in a statement.

According to the province, SaskEnergy’s commodity rate is set based on the price of natural gas, with no profit or loss to the corporation. Delivery rates, on the other hand, help support SaskEnergy’s infrastructure development and investment.

Dustin Duncan, the minister responsible for SaskEnergy, said affordability is the main consideration when utility rates are adjusted.

“SaskEnergy has done solid work on managing fluctuating markets by using its hedging program to lock in natural gas at beneficial prices,” Duncan said in a statement. “That hedging strategy provides price stability and shields customers from the extremes of market volatility.”

Mark Guillet, the Crown corporation’s CEO, said keeping rates affordable for customers while also investing in future growth is one of SaskEnergy’s responsibilities.

“This rate adjustment allows us to provide lower bills for customers while also addressing inflationary pressures we have been managing, such as rising fuel and operating expenses,” Guillet said in the government release.