Are you a Saskatchewan citizen looking to know more about the prices you have to pay to keep your lights on? If you said yes to that question, you probably know all about the Saskenergy corporation.
Saskenergy is a company that promises to empower Saskatchewan homes and businesses with environmentally-friendly energy in a responsible and accessible manner.Despite the vast size of Saskatchewan, SaskEnergy stands out as the sole provider that brings electricity to more than 93% of all communities in the province, proving itself to be an energy powerhouse. The company has four subsidiaries and works with 150 independent natural gas retailers and contractors. Saskenergy is a company with an ensured customer demographic as they are the only option most Saskatchewan citizens have in order to keep their lights on.
Now that you know a little more about Saskenergy, what are they up to now? In light of recent controversy, Saskenergy has had to backpedal in its current course of action in relation to its price hikes.
This controversy started in 2022, wherein Saskenergy proposed a combined commodity and delivery rate increase. This proposal was allegedly made in order to ensure that the company can keep providing affordable electricity to Saskatchewan residents. The last increase in commodity rate of Saskenergy was last 2014 while the last increase in delivery rate was last April 2019.
Although service rate is based primarily on choice, its commodity rate is sold at no profit nor loss for Saskenergy as it is completely based on current market price. Saskenergy’s business model makes use of a price risk management strategy, which ensures that customers are protected from unexpected shocks the market may experience. Saskenergy began to implement their proposed price increases last August of 2022, looking to continue increasing said prices by July 2023 and July 2024.
Amidst this proposal, the public expressed their thoughts and fought for the accessibility of energy. However, the public was promised that even if prices were increased, Saskatchewan would still have the second lowest price of electricity among all Canadian provinces. Despite this reassurance, the Saskatchewan government was still concerned about whether or not citizens would still be able to have access to electricity.
As a result, Saskatchewan Rate Review Panel (SRRP) did not accept Saskenergy’s proposal at the meantime and maintained the commodity and delivery rates implemented in August 2022 while it goes over their requested updated financial information. The proposed increase of rates for July 2023 and 2024 could not be considered yet due to the lack of financial information Saskenergy provided. Although the report Saskenergy gave to the Saskatchewan Rate Review Panel included information that proved Saskenergy was strengthening as a business in the current fiscal year, it lacked the financial forecast to showcase the future growth of the company. It is likely that Saskenergy would only be able to provide this information once it begins business-planning later in June. In addition to the financial aspects, the panel is also examining how the residents of Saskatchewan would be affected by considering the related expenses of using renewable energy sources.
In light of these developments, it is clear that the Saskatchewan Rate Review Panel is still looking for Saskenergy’s proposal and while they do so, there would be no price hikes to come just yet. What are the thoughts of Saskatchewan residents on a price increase by Saskenergy?
