‘Simply can’t afford’: CFIB urges SaskPower against planned rate hikes

Business advocates warn SaskPower’s proposed 3.9% rate hikes could strain small businesses and farms as the plan awaits approval. Donovan Maess reports.

The Canadian Federation of Independent Business (CFIB) has shared serious concerns from its members regarding SaskPower’s planned rate hikes over the next two years.

“[Small businesses] have recently seen insurance premiums skyrocket. They’re dealing with increased labor and occupancy costs and not to mention, massive price volatility as they’re dealing with a lot of economic uncertainty,” CFIB Saskatchewan director Brianna Solberg told CTV News Wednesday.

“It’s a really difficult time, for businesses to absorb any new costs,” she added.

It comes after SaskPower applied for a 3.9 per cent rate increase effective Feb. 1, 2026, and a further 3.9 per cent effective Feb. 1, 2027.

In a letter to the Saskatchewan Rate Review Panel dated Jan. 13, CFIB’s director of legislative affairs as well as the senior policy analyst, argued that SaskPower’s application for consecutive rate increases will hurt businesses.

“Further increases, even when described as ‘modest,’ compound financial strain that many businesses simply cannot afford,” the letter read.

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In the letter, CFIB took issue with the 2026 increase, as it is set to be implemented on an interim basis while the application remains under review.

“For small businesses and farms operating on tight margins, interim increases create immediate cost pressure and uncertainty, shifting financial risk onto ratepayers before the review process has concluded,” the letter read.

The letter urged the Saskatchewan Rate Review Panel to consider the impact of increases on small businesses and family farms, and to make sure any approved rate adjustments balance needs with affordability, competitiveness, and economic sustainability.

“A majority of small business owners report they are unable to pass increased energy costs on to customers without losing competitiveness, leaving them no choice but to absorb the costs directly,” the letter outlined. “This further erodes already-thin margins and undermines business sustainability, particularly in rural and agricultural communities.”

Solberg hoped the province and its Crowns could be more transparent and collaborative with its process when deciding rate hikes.

“Specifically in this case, we need to take a closer look at what the long term impacts of these back-to-back increases will be,” she said. “Be transparent and accountable as to where these funds are going. Why [are] the increase is necessary? Are they using the cost-effective manner we would expect to see?”

“For our members, we want to see justification for why this interim approach was necessary,” Solberg added.

In a response to CTV News, the Government of Saskatchewan said it will continue to invest in its power grid to support record investments.

“We have made decisions that have ensured that Saskatchewan businesses have an affordable and reliable power system while prioritizing the energy security of our province,” the province said in a written statement.

“Firstly, this meant removing the federal carbon tax from your power bill, making Saskatchewan the only carbon tax free province in Canada. SaskPower will continue to revitalize its fleet of coal-fired power plants, expand its transmission and distribution systems, and modernize the provincial grid,” it added.

In an emailed response to CTV News on Thursday, the Rate Review Panel said they received the application for the rate increase on Jan. 2, 2026 and will be making their recommendation to the government on Aug. 13, 2026.

“The government has authorized SaskPower to implement the rate increase on February 1^st 2026. The Panel will make a recommendation to alter the rate increase or confirm it as implemented," the statement read.

“The Government has the ultimate authority as to when a rate will increase and by how much. The Panels role is to make recommendations to the Minister for the Crown Investments Corporation whether the rate increase is fair and reasonable to all stakeholders.”