Newfoundland Power is going to be paying more for the electricity it buys from Newfoundland and Labrador Hydro.
NL Hydro has received approval from the Public Utilities Board for an increase of 6.4 per cent effective October 1. It’s expected that Newfoundland Power will pass those costs on to customers.
Officials say they received the nod from the PUB on September 11, approving changes filed in Hydro’s General Rate Application. On the 13th, Hydro quietly posted word on its website.
If given final approval, customers on the island could see a rate increase of about 6.4 per cent, while most in Labrador may see their bills reduced by about 3.1 per cent.
An update for customers on 2019 electricity rates is now available on our website. The PUB has approved Hydro’s application & final rates are expected to be known in the coming weeks. Fuel continues to be the biggest contributor to cost increases. https://t.co/OdPnICi1VQ
— NLHydro (@NLHydro) September 13, 2019
NL Hydro says the increase is linked to higher prices of oil in the forecast, as well as greater oil usage in their operations.
In July 2018, customers saw a rate increase of about 6.8 per cent. Since then, Hydro says the cost of oil has increased by about $20 per barrel to $106.
Adjustments are based off a formula set in the Rate Stabilization Plan. Should the price of oil be lower than anticipated, Hydro says its rates will be adjusted accordingly—likely in July.
Final applications from both NL Hydro and Newfoundland Power will go before the Public Utilities Board before anything is implemented.
Hydro says they will have concrete numbers for the adjustment following that application.
