SaskPower customers will see bills rise in the new year as a recent release detailed their plans for a price hike.
The rise is set at an average of 3% of current bills, with SaskPower saying the increase is due to the federal government's carbon tax.
That tax rate is set to increase from $50 to $65 per tonne on January 1, 2023, the same date SaskPower's rate is going up.
SaskPower says they're trying to keep rates low as the framework requires them to collect more carbon tax revenue.
“SaskPower is steadily moving toward a low-carbon future while continuing to provide the reliable electricity our province needs to grow,” said Rupen Pandya, SaskPower President & CEO. “We are striving to achieve these goals while keeping rates as low as possible while complying with a federal regulatory framework that requires us to collect additional carbon tax revenue.”
The three per cent increase is an additional cost, separate from SaskPower’s previously announced rate increase of four per cent, which was effective Sept. 1, 2022.
SaskPower must collect the carbon tax through customer bills via a rate rider that is revised on January 1 of every year.
The rate rider is based on an estimate of carbon taxes for the upcoming calendar year, and the difference between the amount collected and actual payment due is factored into the following year’s rate rider.
This is a separate rise from the previous rate increase of four per cent on September 1, 2022.