The provincial government has approved a rate hike on natural gas supplied by the Crown corporation SaskEnergy. The new rate will take effect on July 1.

The approval follows a recommendation by Saskatchewan's Rate Review panel to accept the higher rate, which will add about $120 to the annual bill for a typical residential customer.

The higher rate, $4.84/Gigajoule (GJ) from $3.82/GJ, applies only to the commodity portion of a SaskEnergy bill. The Crown corporation charges a separate rate for the delivery of natural gas.

The delivery rate is currently under examination by the Rate Review Panel.