Newfoundland Power has filed an application for two rate hikes over the next year or so.

The utility is seeking a 1.5 per cent increase effective this coming July 1, and a further 5.5 per cent increase on July 1 of 2025.

President and CEO Gary Murray says they know that these are challenging times and that affordable rates are more important than ever.

He says since 2016 their rate applications have not resulted in any increase in base electricity rates for customers.

He says by managing costs they’ve been able to reduce operating costs by 10 per cent per customer when adjusted for inflation.

Newfoundland Power says its rate increase application reflects changes in the cost to deliver electricity to customers and establishing a “fair return” on investment in the electricity system.

The rate hike application is subject to PUB approval.