SaskEnergy asking for rate increase due to rising natural gas prices

SaskEnergyhas applied to increase the price of natural gas in the province.

The Crown corporation is asking to increase the commodity rate by 25.8 per cent, meaning the average residential customer would have to pay $5.65 more per month.

SaskEnergy said the market price for natural gas has doubled since the Crowndecreasedits prices back in 2019.

"Increased natural gas demand for power generation coupled with higher liquefied natural gas exports are contributing to increased commodity prices," said president and CEOKen Fromin a media release.

SaskEnergy submittedthe rate application to the Saskatchewan Rate Review Panel. The panel will provide the government with an opinion on the fairness and reasonableness of the rate request.Members of the public can give their feedback to the panel at their official website or through social media.

If approved, it would bethe first time SaskEnergy increased its commodity rate since 2014. Currently the company is offering its lowest commodity rate in more than 20 years.

The final decision on the increasewill be madeby the provincial cabinet.If approved the change wouldtake effecton Nov.1,2021.