The provincial government says it’s committed to rate mitigation to keep electricity rates lower.
The province’s Consumer Price Index is expected to increase to 3.8 percent by 2020, due largely to projected electricity rates once Muskrat Falls comes online.
Many people are already wondering how they’re going to be able to pay the heat and light bill if electricity rates double.
Finance Minister Cathy Bennett says government understands that fear and is “committed to rate mitigation”. She says they’ve already put measures in place to make sure electricity rates don’t become unaffordable for residents and businesses.
Government has instructed Nalcor to improve income, and cut expenses to set money aside for a Rate Management Reserve to help lower future electricity rates.
Nalcor has already announced that it intends to use recall power from Churchill Falls to help keep rates down. Those savings are estimated to be in the range of $150 million dollars.