The Canadian Federation of Independent Business (CFIB) and their over 4,300 small business members are urging the Saskatchewan government to reject the Rate Review Panel’s recommendation that SaskPower implements a four per cent increase at the start of April.
The rate increase would come on the heels of a four per cent increase last September and three per cent to start 2023.
The CFIB isn’t the only one calling for a stop to the hike, as the Sask. NDP also calls for the power increase to be scrapped.
Aleana Young, the official critic for SaskPower and Jobs and the Economy, said another rate hike doesn’t make sense.
“In what world does it make sense to raise power rates three times in the span of eight months? In this economy? It’s no wonder why this government has the worst job creation record in the country,” she said. “They’re making life more expensive while they sit on record revenues. All levels of government should be focused on how we can make life more affordable.”
She said the fix to help businesses is simple.
“The Sask. Party Government needs to start listening, scrap these power and energy rate hikes and do everything we can to make sure that we have the local condition here in Saskatchewan for businesses and entrepreneurs to plan and invest and think about the future with confidence. Not worrying about when the next unnecessary rate hike is going to come.”
“Instead of working to make life more affordable during these challenging times, this government continues to add costs on small business owners and families. Let’s get back to common sense and scrap these utility rate hikes,” she added.
According to CFIB’s most recent survey of its members, the top cost constraints Saskatchewan small business owners identified are fuel and energy costs.
An alarming 93% of Saskatchewan small businesses have seen their energy costs increase over the past year despite their energy consumption staying about the same or decreasing.
Brianna Solberg, CFIB director of provincial legislative affairs, said that higher energy costs would mean small businesses have fewer resources to create jobs, invest in their companies, and contribute to the provincial economy.
“Given all the challenges small businesses are currently facing, CFIB is calling on the province to help mitigate the impact of mounting economic pressures on small firms.”
CFIB’s latest recovery dashboard shows that only half of Saskatchewan’s small businesses are back to making normal sales, while the majority of business owners continue to suffer due to significant pandemic-related debt and stress.
One of those businesses struggling to make it back to normal sales is ‘The Cure Kitchen + Bar.’
Morgan Choquer, the part-owner of the Regina restaurant, said after the pandemic, they thought they would see business return to normal.
“It has taken longer than expected, just with the rates increasing and with product cost increasing, it has taken a lot longer than to really get back on our feet than we expected too
She said since the first rate increase, they have seen their power bill get ‘out of control.’
“We’re a business that is open about 20 hours of the day, so our power and energy are constantly running, and that’s definitely been one of the biggest challenges we’ve noticed as far as inflation and increases in prices have gone in definitely in utilities.”
She said they’ve seen their already expensive power bill getting close to almost doubling what it was before the increases were implemented.
“In the last six to eight months, an additional three, four hundred dollars a month minimum being added to our bills,” she stated. “When you are already paying over $1,000, and you are adding hundreds on to that, you know it’s getting close to the point where it is close to doubling.”
That has caused the restaurant to increase their prices, something Choquer said they had no choice to do.
“Our cost of goods has increased, food products have increased a lot, but then with the additional increase of utilities, there really is no option but to raise prices, and I think our consumers really feel that hit as well,” she said.”Things that were a luxury but were affordable aren’t necessary that way anymore.”
The average small business owner in Sask. is starting down $63,9000 in debt, with an alarming 12 percent o businesses considering closing their doors.
