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Saskatchewan homeowners will be paying more for natural gas starting Nov. 1.
SaskEnergy announced Friday the provincial government has approved the corporation’s application to increase its commodity rate from $2.575 per gigajoule (GJ) to $3.20 per GJ.
That represents an increase of about $6.16 per month for the average residential customer. Average small to large commercial customers will pay increases of between $30 and $393 per month, and the average small industrial customer will face an increase of $1,625 per month.
It’s the first increase in the rate since 2014 after four straight reductions. However, SaskEnergy said the new rate will remain the lowest in Canada.
SaskEnergy applied to the Saskatchewan Rate Review Panel to increase the cost to $3.15 per GJ on Sept. 10, but subsequently filed a market update to the panel on Sept. 24 that reflected changes to market conditions and prices at the time. That resulted in the proposed rate going up five cents per gigajoule.
“SaskEnergy’s commodity rate increase is a reflection of the significant rise in natural gas prices. Gas utilities across Canada are facing the same challenge,” Ken From, SaskEnergy’s president and chief executive officer, said in a release.
“Our customers want predictable and stable rates, especially during the cold winter months. SaskEnergy’s price management strategy allows us to deliver on this expectation, and offer the lowest commodity rate in the country to customers.”