(File photo/CJME)

By Susan McNeil

Rate increases

Crown Corps ask for significant rate increases

Jan 2, 2026 | 2:13 PM

Two of Saskatchewan’s crown corporations are applying for significant rate increases over the next year or so.

SaskPower has applied for an almost eight per cent increase – split into two parts – to begin next month.

The Crown Corp wants to increase electricity rates by 3.9 per cent in February 2026 and by the same amount a year later.

The increase is needed to pay for what it said will be record capital investments and to be able to continue supply power reliably.

One of the items on SaskPower’s to-do list over the next few years is to revitalize a fleet of coal-powered plants. They also need to expand transmission and distribution systems.

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“Utilities across Canada continue to face considerable rate pressures, and SaskPower is no exception,” said Rupen Pandya, SaskPower president and CEO. “We will continue to pursue a strategy of balancing the need for moderate rate increases with our required capital investments to maintain reliability for customers.”

A rate application will be submitted to the Saskatchewan Rate Review panel, but account holders can expect to see interim increases on Feb. 1 while the process is completed.

The average residential customer will see increases of $5/month in 2026 and $5/month in 2027, while the average farm customer will see increases of $11/month in 2026 and $11/month in 2027.

Moments after SaskPower announced its intention to increase rates, SGI followed suit.

The provincial insurer wants to increase rates 3.75 per cent in June 2026 and in 2027.

SGI said its rates have not kept pace with provincial inflation. In the last 20 years, the provincial Consumer Price Index has increased by 57.7 per cent while the auto fund rates have increased by only five per cent.

With the increase, 98 per cent of vehicles in the province would see an annual increase of $38.

About one per cent of vehicles will actually see a reduction of $8, and the remaining one per cent will see no change.

SGI said that the average cost of vehicle claims has increased because of inflation and by advanced technology inside the vehicle that makes it costly to repair.

“Inflation and advanced technology in newer vehicles have caused a sharp rise in the cost of vehicle repairs, and the Auto Fund is no longer taking in enough revenue to cover the cost of claims,” said Penny McCune, president and CEO of SGI. “The Saskatchewan Auto Fund operates on a break-even basis over time, but premiums haven’t been enough to cover costs in recent years.”

In 2019-20, the average claim was $4,880 and that has risen 25 per cent to just over $6,000 in 2024-25.

If it proceeds, the interim rate increase will begin in June 2026 and the second increase will be the following year.

Motorcycles and urban taxis will be exempt from the first year of increase while user groups are consulted to address concerns specific to their industry.

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susan.mcneil@pattisonmedia.com