REGINA – The CRTC has approved SaskTel’s request to raise the rates charged to its customers in High Cost Serving Areas (areas outside of Saskatchewan’s nine largest urban centres)
“The rate increase was essentially required by the CRTC decision that mandated high cost serving area (HCSA) rates needed to increase to $30 per month across the country by June 1, 2013, in order to reduce the amount these rates are subsidized from the National Contribution Fund,” said Ron Styles, SaskTel president and CEO in a press release.
“SaskTel has consistently argued that rates in high cost serving areas should be roughly equivalent to rates in urban areas, despite the higher costs associated with serving rural and remote communities, however, this position was not accepted.”
In its June 2007 Price Cap Decision, the CRTC reduced the amount of subsidy that SaskTel receives for providing local service to high cost serving areas and indicated that local rates in high cost serving areas should increase annually by the rate of inflation $30 per month per line. The May 3, 2011 Obligation to Serve decision now allows the rates to rise to $30 per month in three equal installments, by June 1, 2013. These rate increases are revenue neutral for SaskTel.
“Each rate increase will range from $.07 to $2.03 per month depending upon the customer’s current rate and will be effective February 1st, 2012. The increase will be applied to a customer’s bill beginning May 1, 2012, retroactive to the February 1st effective date. The second and third rate increases will be effective and billed on the dates originally proposed by the CRTC; June 1, 2012 and June 1, 2013 respectively. Commencing June 1, 2014, rates may be increased by inflation annually. These rate increases apply to approximately 144,000 customers in High Cost Serving Areas,” reads the release.
