PUB Report Shows Significant Rate Increases for Power
Newfoundland and Labrador will feel the impact of the rising cost of energy without help according to a report that was released on Friday by the Public Utitilies Board.
Based on the most recent project update released by Nalcor in June 2017 the average domestic rate for customers on the Island is forecast to increase to 22.89 cents/kWh in 2021 when the Muskrat Falls Project is commissioned and project costs are required to be included in customer rates.
This is a 75% increase from the current average domestic rate of 13.06 cents/kWh.
Industrial customers on the Island will also see significant rate increases. These extraordinary increases in rates were an overriding issue in the review with stakeholders expressing concern about rate shock and the resulting impact on customers.
Island Industrial customers were especially concerned about their ability to remain competitive in a global economy stating: “The broad and steep impact of these projected rate increases is unprecedented in the history of electrical power regulation before the Board, and indeed appear to be unprecedented in recent North American experience.”