Power rates in Newfoundland and Labrador are continuing their upward trajectory, with a big jump still ahead when the Muskrat Falls hydroelectric project comes online.
The latest increase of about 6.6 per cent for residential customers, approved by the Public Utilities Board (PUB), will come into effect on July 1.
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It is the result of two pieces of business. One is a decision by the PUB to allow supplier Newfoundland and Labrador Hydro higher rates, while waiting for a final decision on an ongoing general rate review. The second is an annual adjustment of rates, under the provincial rate stabilization plan, largely reflecting oil use and fluctuating costs.
Newfoundland Power gets 93 per cent of its power supplied by Hydro, and hikes for Hydro power are flowing through to Newfoundland Power customers.
The increase varies for customers depending on type of service and usage. The average increase in commercial rates ranges from 6.8 per cent to 8.3 per cent depending on type of service, Newfoundland Power stated in a news release Friday, while monthly rates for street light power will go up about 1.6 per cent.
