Electricity rates will increase for most customers on July 1, says N.L. Hydro
In a news release on Wednesday, Newfoundland and Labrador Hydro said electricity rates will increase for most customers in the province on Saturday. (Patrick Butler/Radio-Canada)
Electricity rates in Newfoundland and Labrador will increase for most customers on Saturday, according to Newfoundland and Labrador Hydro.
The changes are the result of N.L. Hydro's annual rate adjustment, which happens each year on July 1.
Hydro made the request for the adjustment in April. It's independent of any changes that will come from rate mitigation and paying for the Muskrat Falls hydroelectric project.
In a news release on Wednesday, N.L. Hydro said rate increases will be between 3.4 per cent and 6.7 per cent for residential customers and between seven and 8.4 per cent for commercial customers.
"We know customers continue to be concerned about electricity rates," the news release reads. "Our priority is to provide safe, cost-conscious and reliable services while meeting our commitment to a net-zero electricity system."
The rate changes are connected to fuel costs from previous years that haven't been collected through the existing rates, the company said.
The province's rate stabilization plan, which was created to ensure rates reflect the cost of generating electricity year over year, also plays a factor.
Meanwhile, Newfoundlanders and Labradorians are also staring down the federal carbon tax — also set to come into effect on Saturday.
The carbon tax will add 14 cents per litre to fuels like gasoline and diesel.
Further, customers heating their homes with furnace oil will see an extra 17 cents per litre on their bills.
Over 40,000 homeowners in Newfoundland and Labrador heat their homes with oil.
