Newfoundland and Labrador Hydro has finalized numbers on the electricity rate increase which comes into effect in a few days.

Customers on the island will be paying an average 6.4 per cent more for their power while Labrador will see a drop of 3.1 per cent.

Hydro says the reason for the increase is that since rates last changed in July 2018, there has been a 23 per cent increase in the forecast price of oil used at Holyrood. Further, there is an increase in the expected volume of oil that is used at Holyrood to reliably operate the province’s electricity system.

Since last year, the forecast price of fuel for Holyrood goes from $86 per barrel to about $106 CAD.

In Labrador, increased customer usage and growth is why rates have dropped for most customers.

Hydro notes that it does not make any money on the cost of fuel for the plant as any surplus or deficit is passed on to customers.

The new cost of electricity takes effect Tuesday.

View detailed rate adjustment information from NL Hydro via this link.