Higher price for natural gas OK with rate review panel

Saskatchewan's Rate Review Panel is OK with a proposal by SaskEnergy to hike the price the Crown corporation charges for natural gas.

SaskEnergy applied for an increase earlier this year. The companydoes not profit on the sale of natural gas, the commodity. It purchases supplies on the open market and passes along those prices to customers.

The final decision on rates is with the provincial cabinet.

If approved, natural gas prices would go up on July 1st.

According toSaskEnergy, the higher price will mean about $10 dollars more, per month, for an average home owner.

Expressed in terms of the price per unit of natural gas, the proposed increase is from $3.82/GJ to $4.84/GJ.

The panel also suggested SaskEnergy should make adjustments on its pricing sooner, when market prices are rising.