REGINA- The Saskatchewan government has directed the Saskatchewan Rate Review Panel to cancel the rate application submitted by SaskEnergy.
The application had been for delivery rate increases of five per cent on July 1 of 2023 and in 2024. News that the rate hike application was cancelled was confirmed in a news release from the province Thursday.
In speaking to reporters at the Legislature Thursday, Minister Responsible for SaskEnergy Don Morgan explained the rationale for the decision. He said this particular hike wasn’t necessary at this time.
“We watched commodity prices go up and down significantly over the last year or two, and they’re down at a lower level now,” said Morgan. “We think it’s appropriate just to maintain some stability right now.”
As for why they are cancelling SaskEnergy's rate hike and not SaskPower, which saw a four per cent increase just come into effect on April 1 after a previous four per cent hike last fall, Morgan responded SaskPower did not have a pending application before the Rate Review Panel. SaskEnergy did.
In further responses regarding the situations for SaskPower and SaskEnergy, Morgan noted SaskEnergy commodity costs have historically been low, but electrical costs are significantly higher. Morgan acknowledged some of the challenges SaskPower is facing, pointing in particular to the impact of the Carbon Tax on electrical rates.
As for whether there will be another rate hike over at SaskPower, Morgan said they will “watch things as they come.”
“We know we have to maintain the viability of all of the Crowns. These are businesses that are owned by all of the citizens of the province. We have to make sure that they’re well capitalized and are able to maintain the services and do the expansion that they need. Those are all things we have to consider.”
