REGINA — Regina businesses are being hit by increased costs for their electricity bills.
As of Sunday, FEb. 1, a 3.9 per cent rate increase from SaskPower came into effect. The company noted that electrical utilities are facing significant rate pressures, which led to the increased rates.
Mike Tate, CEO of the Regina & District Chamber of Commerce, said any increase can put pressure on local businesses.
“Businesses right now have a lot of pressure on them, from the cost of goods to tariffs to a lot of things that unfortunately are out of their control, and it just shrinks their margins, and it does inhibit their ability to grow.”
Tate noted businesses are also reeling from property tax increases after the city passed a 10.9 per cent mill rate in December.
With increased cost, Tate said businesses will look at all avenues when considering reducing costs.
“They could look to move to an RM if their business would be able to support that due to perhaps less cost in terms of property taxes. They could look to have no brick-and-mortar in a location and maybe create an online e-commerce business.”
One local business, Dad’s Diner, said the extra cost hurt but isn’t devastating.
“I think we’re about $800 bucks a month for electricity. So adding [roughly] 5 per cent would add another 40 bucks,” said Tim Philp, owner of Dad’s Diner.
Philp said most of his energy consumption comes from refrigeration.
“Refrigeration runs 24 hours a day at a steady rate, seven days a week, whether you’re open or closed. Everything else can be shut off except for refrigeration.”
Extra costs like these, incurred by a restaurant, trickle down to the customers, noted Philp.
“It will be unfortunate to increase prices for them, but it’s the reality of things nowadays.”
These increased costs can change consumers’ habits, noted Tate.
“Consumers may choose to stay home and eat rather than support a local restaurant.”
SaskPower says they have also requested another 3.9 per cent rate increase in 2027.
