SaskPower says newly announced 3% hike to power bills is to cover carbon tax
Last year SaskPower said no additional cost would be added in 2022
SaskPower says customers will see a three per cent increase to their power bills in the New Year to cover a hike to the federal carbon tax.
It's a change from a year ago, when the Crown utility said users would not see a hike when the tax goes up in January.
At the time, Minister responsible for SaskPower Don Morgan said customers would get a break because of factors including reduced emissions from coal-fired power plants and the addition of over 400 megawatts of wind, solar and biomass power in the province.
Last week, however, SaskPower decided that the extra three per cent increase, which equates to approximately $2.60 per month for the average Saskatchewan home, would come into effect on monthly bills effective Jan 1, 2023.
This is in addition to a four per cent increase on Sept. 1, 2022, and an additional four per cent increase slated for April 2023.
"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," said SaskPower President & CEO Rupen Pandya, in a news release.
I'm perfectly happy to pay extra for electricity for as long as I'm dependent on SaskPower, and I will be looking for ways to not have to be dependent on that fossil fuel.- Mark Bigland-Pritchard, Climate Justice Saskatoon
Climate Justice Saskatoon spokesperson, Mark Bigland-Pritchard said that the rising costs of fossil fuels is an unfortunate reality that comes along with being so dependant on resources that significantly harm the environment.
"If we are going to continue to be major polluters, which we are, payment for us has to happen somehow in order to achieve the transition," said Bigland-Pritchard.
"I'm perfectly happy to pay extra for electricity for as long as I'm dependent on SaskPower, and I will be looking for ways to not have to be dependent on that fossil fuel."
SaskPower said fossil fuels currently make up more than three-quarters of the energy it produces. Wind, hydro and solar power produce a combined total of 21 per cent.
The price increase is a result of price changing from $50 per tonne tax on greenhouse gas emissions to $65/ tonne.