Higher oil prices are being touted by Newfoundland and Labrador Hydro as the main reason for a proposal to increase electricity rates this fall.

Hydro has applied to the Public Utilities Board for an increase of about 7.6 per cent to take effect October 1st. The utility estimates that customers on the island will see an increase of just under one cent per KWH, or $7.60 on every $100 on an electricity bill.

President Jennifer Williams says while there are many factors that contribute to the cost of generating and delivering electricity, the majority of the proposed rate increase for customers on the island is related to the cost of fuel.

NL Hydro says the price of a barrel of oil is currently $106 CDN, up from $86 CDN when the rate was last adjusted in 2018.

However, Labrador will see a slight decrease on their bills because of increased customer usage and growth.