The premier says a 15 per cent rebate on the electricity bills of Newfoundlanders and Labradorians will come into effect once the hydro agreement between this province and Quebec is finalized.

Premier Tony Wakeham says the savings will be even greater since the rebate is coming off before taxes are applied.

The province estimates that the average savings per household will be about $350 per year.

He says the rebate will be in effect for the life of the 50-year contract and will apply to the first 2,000 kWh burned per month.

“It was important, right out of the gate, for me to say to the people of Newfoundland and Labrador, ‘we’re going to do something immediately….and this is where we’re starting.'”

Work is now underway with NL Hydro and Newfoundland Power to reach definitive agreements on the implementation of the rebate. The target is to have those agreements signed before the end of the year.

The rebate will cost the provincial government approximately $92 million annually, with the money coming from the new agreement reached with Quebec.