The hikes are the result of increased spending by Newfoundland and Labrador Hydro and the cost of the Muskrat Falls hydroelectric project. The costs will really kick in as that project comes online.
While Premier Dwight Ball has long committed to helping offset the expected jump in power bills, Budget 2017 includes the first practical step to actually doing it, with the province directing Nalcor to find $210 million to help lower power rates starting in 2020-21.
The offset is to be increased after that, moving to $245 million in the following years, planned for now to 2023. It is being called the “Preliminary Rate Management Reserve.”
“This is a fund that allows us to have a reserve that we can use to lower those electricity rates and give people of the province confidence that we’re working on not just the treasury’s challenges, but also the economic challenges we are facing in our province,” Finance Minister Cathy Bennett told reporters.
She said the fund could take three or four cents per kilowatt hour off of rates, but there is more work to be done.
Nalcor Energy president and CEO Stan Marshall has been told to continue looking to find ways to further offset rates wherever possible.
The provincial government has committed to “further explore opportunities in renewable energy.”
Energy efficiency programs
Budget 2017 includes $5 million, to be used over three years, for a new Home Energy Savings Program. The program is geared toward low-income households and will see grants issued to households for upgrades to their homes to increase energy efficiency.
A separate Home Energy Efficiency Loan Program has $4 million set aside, over the next three years, for low-interest financing covering up to $10,000 on home upgrades for improved energy efficiency.
The province is injecting $485.5 million into Nalcor Energy this year.
Earlier story:
BUDGET 2017: Nalcor Energy told to start addressing power bills
Liberals direct Crown corporation to provide $210 million to help, starting 2020
The Liberal government in Newfoundland and Labrador has taken a significant step towards helping individuals and businesses avoid devastation from forecasted power rate hikes.
The hikes are the result of increased spending by Newfoundland and Labrador Hydro and the cost of the Muskrat Falls Hydroelectric Project. The costs will really kick in as that project comes online.
While premier Dwight Ball has long committed to helping offset the expected jump in power bills, Budget 2017 includes the first practical step to actually doing it, with the province directing the Crown corporation to find $210 million to help lower power rates starting in 2020-2021.
The offset is to be added to after that, moving to $245 million in the following years, budgeted for now to 2023. It is being called the “Preliminary Rate Management Reserve.”
Nalcor Energy president and CEO Stan Marshall has been told to continue looking to find ways to further offset rates wherever possible.
The provincial government has committed to “further explore opportunities in renewable energy.”
Energy efficiency programs
Budget 2017 includes $5 million, to be used over three years, for a new Home Energy Savings Program. The program is geared towards low-income households and will see grants issued to households for upgrades to their homes to increase energy efficiency.
A separate Home Energy Efficiency Loan Program has $4 million set aside, over the next three years, for low-interest financing covering up to $10,000 on home upgrades for improved energy efficiency.
The province is injecting $485.5 million into Nalcor Energy this year.
