A farmer from the Melfort area is concerned about SaskPower's application for a rate increase this year and next year.
SaskPower is proposing a 3.9 per cent increase effective February 1, 2026 and another 3.9 per cent increase the same date next year. The provincial utility says it would add five dollars per month for residential customers both years and for the farm it would add 11 dollars per month over the same time period.
They add the rate increase this year will be implemented February 1 on an interim basis while the application is being reviewed by the Saskatchewan Rate Review Panel.
Scott Hermus, who is also a member of the Agricultural Producers Association of Saskatchewan Board of Directors for District five, says the increases would add 300 dollars per year to his bill this year and basically double to 600 dollars next year.
"And then they'll probably charge PST on that as well, so I mean, it's just, it's a lot. It's a lot of small cuts, I guess, if you want to put it that way." he said.
A news release from the Saskatchewan NDP claims the proposed rate hikes would result in farmers paying an additional $7.5 million this year and another $8 million in 2027. They're calling on the provincial government to block the application before February t, saying it's not a modest increase as the government claims it to be.
"There is nothing ‘modest’ about this,” said Aleana Young, SaskPower Shadow Minister. “This cost hike will be the latest blow to family farms already contending with tariffs, drought and a Sask. Party government that is 18 years old and out of ideas to support them and grow our economy. Kill this farm tax.”
SaskPower says the increases are needed to maintain reliable power to customers, "revitalize its fleet of coal-fired power plants, expand its transmission and distribution systems, and modernize the provincial grid."
Hermus understands the need to upgrade but believes in doing it in a "cost-effective manner" that can also help farmers remain sustainable and competitive. Farms typically use three-phase power for large buildings and farm equipment.
"Let's make the farms more efficient. Let's help out our farmers." he said.
Hermus would also like to see additional transparency from SaskPower regarding where specifically the money from increased rates will be utilized. He adds farmers need to be involved in the conversation before decisions like this one are made.
The last rate hikes were in 2022 and 2023 of four per cent each year. Prior to that there were no increases for four years.
