The Government of Saskatchewan recently approved adjustments made to both commodity and delivery service rates, by SaskEnergy. These changes were recommended by the Saskatchewan Rate Review Panel.
Beginning Nov. 1, 2016, residential customers will see a decrease of nearly two per cent a month, or $15 annually, on their heating bills. This comes after a decrease of $53 annually, a change which came into effect on Jan. 1, 2016.
“When you add the savings from earlier this year to this latest decrease, residential customers will see their natural gas bill shrink by $68 annually,” said Dustin Duncan, the minister responsible for SaskEnergy. “I’m pleased we’re able to pass on savings to customers as we head into the winter heating season. SaskEnergy also offers price protection, which shields customers against market volatility at a time of year when they’re using most of their natural gas.”
A commodity rate decrease from $4.30/GJ to $3.65/GJ has been possible due to low market prices. The rate review panel supported SaskEnergy’s application, with an adjustment to the commodity rate, a 13 per cent decrease instead of the 14 per cent decrease for which the Crown corporation applied, in May 2016.
SaskEnergy will also implement an 8.6 per cent increase to its delivery service rate, to remain competitive with other utilities. This increase will provide one of the lowest residential delivery charges in Canada. The main purpose of the increase is to accommodate the costs for safety and infrastructure renewal.
“SaskEnergy continues to invest in safety technology, as well as proactive infrastructure programs, such as the service tee upgrades in areas of the province prone to ground shifting from excessive soil moisture,” said Duncan. “Over the past five years, SaskEnergy has upgraded more than 13,000 pipeline connections to reduce potential for underground leaks.”
Since 2009, SaskEnergy has achieved more than $38 million in efficiencies, with another $4 million in efficiencies planned for this fiscal year. The review panel report also noted future billing of customers in energy rather than volumes. It is under further review by SaskEnergy and the provincial government.
