A SaskEnergy proposal to increase natural gas delivery rate was presented to the provincial cabinet Tuesday.

The Saskatchewan Review Panel, which presides over rate changes in Crown corporations, approved SaskEnergy's recommended increase in the rate for delivering natural gas would cost the average household $2.10 more a month.

This increase affects only the delivery portion of natural gas and not the commodity rate of the gas itself.

SaskEnergy, the provincially owned natural gas company, presented the rate increase to the review panel as a way of offsetting the costs of new customer hookups, higher labour rates, increased safety requirements and higher costs for goods and services. Under the current rate structure, the Crown corporation has identified a $7.9 million revenue shortfall.

If cabinet approves, the proposed change will take effect Jan.1.