Business owners and farmers across Saskatchewan are raising the alarm over proposed electricity rate increases from the provincial Crown corporation, SaskPower. The concerns are outlined in a formal letter from the Canadian Federation of Independent Business (CFIB), which warns the hikes will compound existing financial pressures.
Details of the Proposed Increases
Earlier this month, SaskPower applied for consecutive 3.9 per cent rate increases. If approved, the first hike would take effect on February 1, 2026, followed by a second identical increase on February 1, 2027. The Crown utility has indicated the first increase would be implemented on an interim basis while its full application is under review by the Saskatchewan Rate Review Panel.
The CFIB letter, dated January 13, 2026, and signed by the federation’s director and senior policy analyst, was provided to media by the Opposition NDP. It argues that small businesses and farm members are already under significant strain and cannot absorb further costs, even those described as "modest."
Opposition and Industry Backlash
The official Opposition New Democratic Party (NDP) seized on the letter to criticize the governing Saskatchewan Party. NDP MLA Aleana Young condemned the proposed increases during a news conference at the Saskatchewan Legislative Building in Regina on Thursday, January 15, 2026.
"The Sask. Party’s proposed rate hikes are going to be a gut punch to economic growth and to competitiveness here in Saskatchewan," Young told reporters. She predicted the move would hit small businesses and farmers at a time when they can least afford it, forcing them to either absorb the costs on thin margins or pass them on to consumers.
When asked for alternatives, Young pointed to government decisions as the root of SaskPower's financial challenges and stated the hikes should be scrapped to avoid downloading costs onto families and businesses.
The CFIB letter also challenged SaskPower's estimate that the average farm customer would see an increase of about $11 per month from each hike. The federation stated that feedback from its members suggests the financial impact will be "far greater."
Government's Position on Affordability and Investment
The provincial government responded to the concerns by emphasizing its commitment to balancing affordability with necessary investment. In an emailed statement to the Regina Leader-Post, the government highlighted that Saskatchewan is the most affordable province in Canada and intends to keep it that way while ensuring the financial sustainability of its Crown corporations.
"Our Government will continue to invest in the reliability of our power grid, to support record capital investments and continue providing reliable power for the people, businesses, and communities of Saskatchewan," the statement read.
The debate now rests with the government-appointed Saskatchewan Rate Review Panel, which is tasked with providing an objective evaluation of SaskPower's application. The outcome will significantly impact the operational costs for thousands of small businesses and agricultural producers across the province.
