Close

One-Time Bill Credit

In July 2020, active residential and business customers who would normally see their electricity rates adjusted on July 1st each year will receive a one-time credit on your electricity bill.

This credit is based on Hydro’s expected fuel savings at the Holyrood thermal generating plant. The recent decrease in oil prices worldwide means it will cost us less to produce electricity over the next year – those savings are being passed directly onto our customers.

The one-time bill credit replaces the annual July 1st electricity rate adjustment that normally occurs through the Rate Stabilization Plan. It gives customers our expected savings upfront – providing relief on electricity bills now, rather than spreading out the forecasted fuel savings over the next 12 months.

Who will receive the credit?

All active residential and business customers who have an electricity account on July 1, 2020, and who would normally see their electricity rates adjusted on July 1st each year through the Rate Stabilization Plan, will receive the one-time credit on your electricity bill.

This includes Hydro customers:
• On the island, including those in rural communities served by Hydro’s diesel generation (e.g., Ramea, St. Brendan’s, etc.)*
• In the L’Anse au Loup system (from L’Anse au Clair to Red Bay, Labrador)
• In rural Labrador communities served by Hydro’s diesel generation (e.g., Cartwright, Hopedale, etc.)

Do I have to apply for the credit?

No. The one-time credit will automatically be applied to your July electricity bill.

The credit and the amount you receive will appear on a separate line of your July bill, listed as RSP One-Time Bill Credit.

How much will I receive?

The credit amount that customers receive will vary based on your past energy usage.

Residential Customers: On average, a residential customer that uses electricity as their primary heat source (average use of 1,520 kWh/month) will receive about $147.

Business Customers: Due to the varied amount of energy used by business customers based on their location, the type of business and equipment in operation, etc. the amount of the credit will vary widely for business customers.

If your bill credit is more than your July balance, your credit will be carried forward to your next electricity bill.

If you are on our Equal Payment Plan (EPP), the one-time bill credit will be applied against your regular EPP monthly payment.

How is my credit calculated?

If you have been an active customer for the past 12 months:
Your one-time credit will be based on your most recent 12 months of energy use, ending June 30, 2020.

If you have been an active customer for less than 12 months:
Your one-time credit will be based on your energy use to date, and the additional months will be estimated to reflect average energy use.

If you have been an active customer for less than 1 month:
Your one-time credit will be based on the average annual energy use by other customers in your rate group.

What is the Rate Stabilization Plan?

Every year on July 1, we adjust electricity rates based on the price of oil used to generate electricity at the Holyrood Thermal Generating Station, the amount of electricity used by customers, and the annual amount of water we use for hydroelectric generation.

This routine, annual adjustment is called the Rate Stabilization Plan (RSP). It was created to ensure that customer rates reflect the actual cost of electricity generation from year to year.

Learn more about the RSP.

 


*All eligible customers on the island serviced by Newfoundland Power will also receive the credit.