Regina, April 27, 2023 - Following months of lobbying from the Canadian Federation of Independent Business (CFIB) on behalf of Saskatchewan small businesses, CFIB is pleased to see the Saskatchewan government cancel SaskEnergy’s application to increase delivery rates by 5% on July 1 of 2023 and 2024. This is a positive step toward mitigating cost pressures, and welcome news to the province’s small businesses.
“Our latest member survey data indicates that scrapping energy rate increases is a much-needed measure to help get small businesses back on track,” said Brianna Solberg, CFIB Provincial Affairs Director. “Only half of Saskatchewan small businesses are back to making normal sales, and the majority are still facing significant pandemic-related debt and stress. Many business owners have been left wondering if they will ever be able to recover, or if they should simply close their doors permanently.”
In a recent written submission to the Minister responsible for SaskEnergy, CFIB highlighted that over the past 12 months, fuel and energy costs have consistently been identified by our members as the number one cost concern. According to CFIB survey data from January 2023, 93% of Saskatchewan small businesses have seen their energy costs increase despite their energy consumption staying about the same or decreasing.
Last August, SaskEnergy applied a 16 to 20% rate hike. Additionally, SaskPower has increased rates by 11% since last October. The majority (65%) of Saskatchewan small business owners have indicated they cannot pass these increased energy costs onto their customers. They are simply forced to absorb these costs, further eroding their bottom lines. Therefore, CFIB’s message to the Saskatchewan government has been clear: fuel/energy cost relief has become increasingly urgent for small business owners.
For several months, CFIB has been calling on the Saskatchewan government to provide cost relief by halting any further SaskPower or SaskEnergy rate increases, or by temporarily suspending the collection of the provincial fuel tax.
“We believe today’s announcement to forgo plans to hike SaskEnergy rates will serve to aid small businesses on their road to recovery,” said Solberg. “We are glad to see the Saskatchewan government recognize the concerns of small businesses and we hope to see the province continue to take steps to help create an environment where small businesses can survive and thrive.”
Brianna Solberg, CFIB
306-713-8071
Brianna.solberg@cfib.ca
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 97,000 members across every industry and region, including 4,300 in Saskatchewan. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.