SaskEnergy will be looking to give customers a break on their bills starting in October.
The Crown natural gas utility is applying to the Saskatchewan Rate Review Panel for adjustments to the commodity and delivery service rates. The submission, which will officially be made to the panel on Thursday, is asking for a 22.1 percent decrease in the commodity rate, while also asking for a five percent delivery service rate increase.
The commodity rate for natural gas from SaskEnergy is currently $4.20 per gigajoule. If the SRRP approves the proposal, the 22.1 percent decrease will see the rate come down to $3.30 per gigajoule. Combined with the proposed increase for the delivery service rate, the average residential customer will see an overall bill decrease of around $68 per year, according to SaskEnergy.
"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," Minister Responsible for SaskEnergy Don Morgan said. "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."
SaskEnergy uses a hedging strategy for commodity rates to lock in the price for future purchases. This is intended to help protect customers from the volatility of the market. This strategy has helped customers avoid prices as high as $9 per gigajoule over the past year.
The Rate Review Panel will post the application to its website, and arrange for a period of public consultation, and assign a technical expert to look at the application. After the review process, the panel will prepare a report on the proposed changes and make recommendations regarding the request. It is then submitted to the Minister responsible for the Crown Investments Corporation, and it is then submitted to the provincial cabinet for final approval.