Editor’s Note: This story corrects a previous version which suggested that the rate increase had already been approved.

The provincial government is suggesting a way to help mitigate another possible increase in power rates this coming July.

The Premier says he’s written NL Hydro to advise them to apply a $45-million credit from the Rural Rate Alteration account to offset an upcoming electricity rate increase relating to Newfoundland Power’s cost recovery.

The move, according to Tony Wakeham, is intended to ease inflationary pressure.

The action, says Wakeham, means electricity rates, that were projected to increase by seven per cent on July 1st, would be reduced to 2.25 per cent.

In the meantime, the PUB says the utilities have not yet filed applications for any rate increases.