Most electricity consumers in the province can expect to pay more money on their power bills come July, according to Newfoundland and Labrador Hydro.
In its annual filing with the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB), Hydro’s fuel price projection came in at $119 per barrel of oil, up from the previous figure of $103.
The adjusted rate for consumers is expected to rise by 5.4 per cent as of July 1. Supply costs for Newfoundland Power associated with increased electricity usage will result in an additional 1.5 per cent increase as of the same date, according to Hydro.
The overall rate increase would then be seven per cent. The PUB is now tasked with giving final approval to the rate increases.
“Presently, electricity rates on the island are directly influenced by the price of oil used to generate electricity at the Holyrood Thermal Generating Plant,” said Jim Haynes, Hydro’s Vice President of Regulated Operations, in a news release issued today. “Rising oil prices mean electricity rates are increasing.”
Hydro said the wholesale rate for electricity will increase by approximately eight per cent, but the rate stabilization plan adjustment results in a lower rate increase of 5.4 per cent for consumers.