Rural municipalities and agricultural producers are raising concerns about proposed electricity rate increases from SaskPower, warning the changes could raise operating costs for farms and strain community facilities such as small-town rinks.
The concerns were outlined in a submission from the Saskatchewan Association of Rural Municipalities (SARM) to the Saskatchewan Rate Review Panel, which is reviewing SaskPower’s proposed electricity rate increases for 2026 and 2027.
SaskPower has proposed rate increases of about 3.9 percent in both 2026 and 2027.
SARM said higher electricity costs could add pressure on rural municipalities and recreation facilities that already operate on limited budgets.
In a statement to the Daily Herald, the Government of Saskatchewan said electricity rates are reviewed through an independent process to ensure the Crown utility can continue delivering reliable and affordable power.
“Our government also continues to offer the second lowest utility bundle in Canada. SaskPower rates are reviewed through an independent process to ensure that the Crown utility can continue to deliver reliable and affordable electricity to Saskatchewan farms, families, and businesses,” the statement said.
The government added that investments in the electrical grid are necessary to maintain reliability as demand for power continues to grow across the province.
The statement also pointed to the Community Rink Affordability Grant, which the government said was doubled to help local facilities remain open.
“Our government understands how important local rinks are to communities across Saskatchewan. That’s exactly why we promised and delivered on doubling the Community Rink Affordability Grant,” the statement said.
SARM’s submission to the review panel warned that rising electricity costs could affect community rinks in smaller communities, which often rely on volunteers and fundraising to operate.
The organization said higher electricity costs could lead to higher user fees, more fundraising, or reductions in programming hours if operating expenses continue to rise.
Agricultural producers say farms are also highly dependent on electricity for day-to-day operations.
Scott Hermes, District 5 director with the Agricultural Producers Association of Saskatchewan (APAS), said farms rely on electricity for tasks such as drying grain and running aeration systems.
“Our farmyards are all pretty well electrified. We use electricity to dry grain and run aeration fans and grain dryers, so farms are very dependent on electricity,” Hermes said.
Hermes said producers are concerned about the cumulative effect of rate increases.
“I’m fairly concerned. The rate increase will be about 3.9 this year and 3.9 next year,” he said.
He said the increase could add several hundred dollars annually to farm electricity bills.
“The rate increases are going to cost the average farmer about $300 a year over what we paid last year,” Hermes said.
While some farms are exploring renewable energy options, Hermes said they cannot fully replace the electricity supplied through the grid.
“We can use solar on the farm and wind power, but they’re not efficient enough to replace SaskPower electricity. On the farm we need electricity. There’s really no alternative,” he said.
Hermes said agricultural producers would like to see more transparency around electricity rate increases and greater support to help farms improve efficiency.
“Transparency is our big thing. We want to know where the money is going and why these rate increases are needed,” he said.
SARM’s submission also suggested measures such as targeted rebates or support programs to help offset the impact of electricity rate increases on rural municipalities and agricultural producers.
