Residents in Saskatchewan may soon experience increased costs for both power and vehicle insurance as Saskatchewan Government Insurance (SGI) and SaskPower have proposed significant rate hikes for the coming years.
SGI Proposes Rate Increase
SGI has submitted a proposal to the Saskatchewan Rate Review Panel for a 3.75% rate increase. This hike is planned to take effect in June 2026, followed by another increase in 2027. If approved, this would mark the first rise in rates since 2014.
- About 98% of vehicles in Saskatchewan will see an average rate increase of $38.
- Approximately 1% of vehicles may experience a slight decrease of about $8.
- The remaining vehicles will not see any rate change.
Motorcycles and urban taxis will be excluded from the initial changes to allow for further discussion on industry-specific concerns. SGI attributes these proposed increases to rising repair costs driven by inflation and advancements in vehicle technology.
Penny McCune, SGI’s president and CEO, indicated that the modest increases are necessary to address the growing costs associated with auto damage while considering the financial pressures faced by residents.
SaskPower Seeks Rate Hike
SaskPower has also requested a 3.9% rate increase for both 2026 and 2027. This proposal suggests an implementation date of February 1 for both increases. If approved, the average residential customer could see an increase of approximately $5 per month in each year, while farmers would face a monthly rise of around $11.
SaskPower emphasizes that these adjustments are crucial for maintaining reliable service. The utility plans to revitalize its coal-fired power plants, expand transmission and distribution systems, and modernize the provincial grid to ensure continued service quality.
Political Response
The proposed rate increases have drawn criticism from Saskatchewan’s Opposition NDP. Party Leader Carla Beck described the hikes as a “full-on fiscal trainwreck” and accused the provincial government of mismanaging finances. Beck highlighted that residents are already experiencing significant financial anxiety.
Recent reports indicated that SaskPower reported net earnings of $75.7 million in the fiscal year 2024-25, down from $184.6 million the previous year, while SGI recorded earnings of $43.2 million, with significant losses in its stabilization reserve.
Jeremy Harrison, responsible for the Crown Investments Corporation, defended the utility’s financial approach, noting that Saskatchewan’s Crown corporations provide some of the lowest utility costs in Canada.
