SaskEnergy natural gas rate lowest in almost two decades, could go lower

(File photo)

Saskatchewan homeowners and businesses are starting November with a drop in their natural gas rates to the lowest level in almost two decades.

The government says SaskEnergy's commodity rate sits at $2.95 a gigajoule, the lowest rate offered to customers since 1999.

A 70-cent reduction was granted SaskEnergy as an interim rate.

The Crown utility has applied to the Saskatchewan Rate Review Panel for another 30-cent drop to $2.65 a gigajoule, which would come into effect April 1.

Bronwyn Eyre, minister responsible for SaskEnergy, says the rate reduction could be wiped out if the federal government imposes a carbon tax on the province.

Saskatchewan opposes the tax that Ottawa says it will levy in April on all provinces who don't come up with their own price on polluters that must meet federal standards.