The Consumer Advocate says the new agreement on Labrador power production and construction will have no direct effect on the rates paid on the island.

Newfoundland and Labrador, and Quebec will develop Gull Island, expand Churchill Falls and rewrite the Upper Churchill contract, which has stood since 1969.

Advocate Dennis Browne says without rate mitigation, ratepayers on the island would be paying double the current 14.2 cents pKH.

“That’s a heckuva lot of money but the mitigation plan is good only to 2023,” said Browne.