Brian Jones (in his column June 20 in The Telegram) and others predict that electricity rates will double when “the rat” comes on stream.
Of course, anxiety around this possibility has not been lessened by Nalcor’s refusal to release its Power Purchase Agreement with NL Hydro.
It was also reported today that our population is again falling based on surplus outmigration.
Cause for concern
This during the time of a major construction boom should be a major cause for alarm especially when we take into account the negative systemic population growth based on the birth/death ratio.
And let’s not be distracted from the truth by the laughable indignation expressed by current and former politicians and their cronies who argue that those numbers don’t reflect job growth through new investment strategies.
But back to the electricity issue. Right now many users pay $500 to $600 a month or more in the dead of winter.
If the rates don’t, in fact, double but increase by a comparatively modest 50 per cent, that’s $750 to $900 a month or more for nearly half of the year.
If you happen to live in an average two-storey home in St. John’s, add another $350 to $400 a month to your costs for property tax.
‘No tax inceases?’ Right
By the way, don’t you think it was rather sneaky how this city proclaimed “no tax increases” while creating the same effect by raising house values to their actual value?
In conclusion, even taking the modest electricity cost increase scenario into account many livyers in the Northeast Avalon will soon will be paying well over $1,100 a month before mortgage, car payment, gas, insurance and groceries.
One can find good quality rental accommodations (electricity included!) in far warmer climes than Newfoundland for that amount of money.
Do the math and expect the exodus to increase.
Of course, many of the politicians aren’t too concerned.
They have already purchased.