Residents of Saskatchewan are looking at increased costs for two essential services in the coming years, as the province's major Crown corporations have filed for rate adjustments. Both Saskatchewan Government Insurance (SGI) and SaskPower have submitted applications for hikes that are now under consideration by the provincial regulator.
Proposed Increases and Their Impact on Your Wallet
The proposed changes are set to take effect on different schedules. SGI has applied for auto insurance rate increases slated for June of both 2026 and 2027. Each increase would be 3.75 per cent. For the average vehicle owner, the 2026 adjustment would mean paying about $38 more per year. The Crown insurer notes this applies to roughly 98 per cent of vehicles in the province.
Meanwhile, SaskPower is seeking electricity rate hikes of 3.9 per cent for each of the same two years, with the first increase planned for February 1, 2026. For the typical household, this translates to an extra $5 on their monthly bill in 2026, followed by another $5 increase in 2027. Farm customers can expect a larger jump, with average increases of $11 per month in each of those years.
The Driving Forces Behind the Rising Costs
Officials from both corporations have pointed to significant financial pressures necessitating the moves. SGI President and CEO Penny McCune cited inflation and the advanced technology in modern vehicles, which has driven up repair costs dramatically. The corporation released data showing the average vehicle damage claim has surged by 25 per cent, from $4,880 in the 2019-20 period to $6,101 in 2024-25.
SaskPower's rationale centres on funding major infrastructure projects. The utility states it needs additional revenue to support record capital investments aimed at ensuring reliable power. Their plans include revitalizing aging coal-fired plants, expanding transmission and distribution networks, and modernizing the provincial grid to enhance energy security.
Approval Process and Next Steps
These proposed hikes are not final. The Saskatchewan Rate Review Panel must review and approve the applications from the Crown corporations. This independent body examines the requests to ensure they are justified and in the public interest before giving the green light.
SGI has noted that motorcycles and urban taxis will be exempt from the first year of the rate program. The insurer plans to consult separately with these groups to address specific industry concerns. Vehicle owners can check the potential impact on their specific model online at the SGI website.
As Saskatchewan's economy continues to evolve, these proposed increases highlight the balancing act Crown corporations face in maintaining service quality and reliability while managing the rising costs of operations, technology, and infrastructure renewal that ultimately affect every household and business in the province.
