SaskEnergy rate increases proposed over the next two years create affordability concerns for customers, according to the panel tasked with reviewing the Crown corporation’s application.
The Saskatchewan Rate Review panel submitted its report on the proposed increases to the Minister Responsible for Crown Investments Corporation of Saskatchewan on Friday.
In recommendations to the minister, the panel said proposed delivery rate increases for 2023-24 and 2024-25 “cannot be considered” until SaskEnergy provides updated financial forecasts.
The Crown submitted a multi-year application for increases to delivery rates over the next two years, including a five per cent increase effective June 1, 2023 and another five per cent increase on June 1, 2024.
It also recommended that proposed delivery rate increases be deferred by one month each, to July 1, 2023 and 2024. Pushing back the effective dates would give the panel time to review the requested updated information and financial forecasts.
The panel factored in affordability concerns for consumers as a contributing factor for its recommendations.
“During its deliberations for this review, the Panel noted that the proposed rate increases to customers raises material concerns regarding both customer affordability and competitiveness during a period of economic volatility,” the report reads.
The commodity rate increased 31 per cent on August 1, 2022, alongside an eight per cent increase in delivery rates. The rate review panel recommended those 2022 increases be maintained.
In a number of recommendations to SaskEnergy, the panel suggested the Crown focus on affordability initiatives and optimizing internal efficiencies.
The minister will review the panel’s recommendations before making a final decision on the proposed increases.
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