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Prices and politics

Published on September 6, 2012; Published on September 6, 2012

Topics :: CBC , Newfoundland and Labrador Hydro , Public Utilities Board

From Sept. 30, 1991 to June 21, 2011, my electricity rate went from 6.432 cents per kilowatt hour to 9.584 cents/kwh, a difference of 3.152 cents.

In 20 years my rate only increased by just over 3 cents.

I received my August 2012 bill and the rate is 11.171 cents/kwh, an increase of 1.587 cents in two years.

All the media outlets— the CBC, NTV, The Telegram and VOCM — made the announcement that the rate increase was due to rising oil prices.

No one seemed to see that oil prices have decreased.

Newfoundland and Labrador Hydro is a monopoly and can increase rates as much as they want to justify Muskrat Falls.

Isn’t the Public Utilities Board mandated to prevent this?

Why won’t someone in the media investigate this?

Gerry Goodman

St. John’s

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Comments

John Smith

- September 6, 2012 at 15:18:09

Our rates have increased by 70% since 1998. It costs 16.5 cents a KWH to produce power at Holyrood at 100 dollar a barrel oil. We use varying amounts of oil depending upon load, in winter, it can go as high as 60%, in summer lower, it fluctuates.The PUB is entirely...100%...responsible for our rates...no one else...

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Winston Adams

- September 6, 2012 at 13:07:23

Wouldn't look good to have a shock price increase of 40 percent in one year in 2017, so lets increase it say 7 percent each year, fewer complaints. And when spending on engineering services etc for Muskrat Falls, at 12 -15 million a month, that's about as much as oil for Holyrood for a year. And we're not even sanctioned yet. Its called a VISION.

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Cyril Rogers

- September 6, 2012 at 12:35:07

These increases have little or nothing to do with any increases in the price of oil, despite what the government has been saying. They are simply designed to condition us for the inevitable large yearly increases that will be needed to pay for Muskrat Falls. This project will be paid for SOLELY BY RATEPAYERS, whether the power is needed or not, and is almost completely independent of the price of oil. This has been a con game from the start and we are the ones being conned. It is up to all of us to raise our voices and let them know that we know!

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Maurice E. Adams

- September 6, 2012 at 08:15:52

Even if oil prices doubled, it should have only a marginal impact on island electricity rates since only about 12% of the island's electricity comes from oil-fired generation at Holyrood.

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