“Farms and small business owners have enough on their plate in a good year,” said Aleana Young, Saskatchewan NDP Shadow Minister for Jobs and the Economy. “These rate hike will be a gut punch to our economy. What is Scott Moe is thinking?”
CFIB has filed an official submission to the rate review panel and to Minister Jeremy Harrison, arguing that the planned rate hikes will have a “far greater impact” on farms and small businesses than the Sask. Party has suggested.
The Sask. Party’s application claims that farms and small businesses would only see their costs go up $11 per month. According to a survey of their members, CFIB says that the first rate hike would cost farms and businesses hundreds more annually, with the number doubling with the second rate hike in 2027.
Farmers and small businesses are also concerned that their taxes will go up, as the Sask. Party charges six per cent PST on power.
"Electricity is a core operating cost for small businesses and farms, not a discretionary expense. The two proposed back-to-back rate increases may be described as ‘modest,’ but for energy-intensive operations the cumulative impact is significant and further strains already tight margins,” said Brianna Solberg, Director for Prairies and Northern Canada with the Canadian Federation of Independent Business. “CFIB is actively advocating to ensure the impacts on Saskatchewan’s farms and small businesses are fully considered.”
Young added, “To stay afloat, farms and small businesses will have no choice but to raise prices.
“Food will cost more, goods and services will cost more – there will be a horrible domino effect Saskatchewan people simply can’t afford right now. This rate hike plan cannot go through. It’s time for change.”
Moe and Harrison both stated in December that the government was not considering power rate hikes when asked about $800 million of unbudgeted secret spending at SaskPower.
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