SaskEnergy’s application for a rate increase is being supported by the province’s rate review panel.

The proposed increase, if approved by the provincial government is 28.1 percent to 12.78 cents per cubic metre, which is $3.20 per gigajoule.

In its application, SaskEnergy indicated that the proposed increase was designed to recover the higher forward costs of gas from November 1, 2021 to October 31, 2023.

SaskEnergy purchases natural gas on the open market and passes on the cost of natural gas to customers at the same price it pays to suppliers, including all expenses. The cost of providing natural gas to consumers this coming year is forecasted to be higher than the current rate of 9.98 cents per cubic metre ($2.575GJ).

The increase is also  aimed to eliminate the outstanding balance in the Gas Cost Variance Account by the end of October in 2023.

On average residential customers would see an increase of $74 per year, small commercial customers would see an average rise of $361, large commercial customers would see an average increase of $4,713.