Home Gas effect SaskEnergy’s proposal would see the average household pay an extra $11.95 per month in the first year – DiscoverHumboldt.com

SaskEnergy’s proposal would see the average household pay an extra $11.95 per month in the first year – DiscoverHumboldt.com

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SaskEnergy announced that it had filed with the Saskatchewan Rate Review Panel a three-year combined commodity and delivery service rate proposal that would increase the customer’s average monthly bill by approximately $11.95 per month the first year, $2.43 per month in the second year and $2.53 per month in the third year.

These respective increases are 16.8%, 2.9% and 2.53%. The first would enter into force on August 1, 2022, the second on June 1, 2023 and the third on June 1, 2024.

SaskEnergy said in a statement that “the rate of the commodity is on a cost recovery basis, reflecting natural gas market costs, with no profit or loss earned or incurred by SaskEnergy. »

“SaskEnergy’s residential customers currently have the lowest natural gas bills in Canada and will continue to have the lowest natural gas bills in the country if this proposal is approved,” the President and CEO said per acting, Mark Guillet, in the press release.

Graph provided by SaskEnergy

SaskEnergy said it was able to achieve some price stability through a “hedging (price risk management) strategy that locks in the price of natural gas to buy in the future.”

“Following the sharp rise in natural gas prices in 2022, some utilities across Canada have implemented product rates over $8 per gigajoule, which is almost double what we offer,” Guillet said. “Our hedging strategy allowed SaskEnergy to quote a base rate of $4.20 per gigajoule, which is well below the market price of natural gas. Without this strategy, SaskEnergy would need a tariff of at least $6 per gigajoule. »