Rates for our Island Interconnected, L’Anse au Loup and Isolated Rural customer rates are changing, effective July 1, 2023. Rates will increase between 3.4% and 6.7% for residential customers and between 7.0% and 8.4% for commercial customers.

Rates for customers in Hydro’s L’Anse au Loup and Labrador Diesel Systems are adjusted for the Northern Strategic Plan. There is no change to rates for Labrador Interconnected customers.

We know customers continue to be concerned about electricity rates. Our priority is to provide safe, cost-conscious and reliable services while meeting our commitment to a net-zero electricity system.

Why are rates increasing?

These rate changes are primarily related to fuel costs incurred from previous years that have not yet been collected by existing customer rates. The Rate Stabilization Plan was created to ensure that customer rates reflect the actual cost of electricity generation from year to year, including fuel costs.

The increase in customer rates is not related to the commissioning of Muskrat Falls or the Labrador Island link.

How were the new rates determined?

Rate changes for our retail customers are implemented in accordance with Hydro’s Rules and Regulations, Policies for Automatic Rate Changes. Changes in rates must be approved by the Board of Commissioners of Public Utilities.

When Newfoundland Power changes its electricity rates, Hydro is required to automatically adjust rates for many of its customer classes. This means either matching our rates to those of Newfoundland Power customers or adjusting rates by the comparable average rate change.

An increase to the wholesale rate we charge to Newfoundland Power was approved effective July 1. This required a 3.9% increase to the average customer bill charged by Newfoundland Power. Newfoundland Power also required an additional 3.0% average customer bill increase, reflecting its Rate Stabilization Clause and Municipal Tax Adjustment. The average rate increase varies by customer class.

For more information visit: https://nlhydro.com/electricity-rates/