N.B. Power has filed a request for a regulatory approval to implement a 4.75% increase in electricity rates set for April 2026. This proposed hike comes in the wake of a series of previous rate increases, including a significant 30% rise over the last three years. If approved by the Energy and Utilities Board (EUB), the average residential power bill will see an addition of approximately $130.
Details of the Rate Increase Proposal
- Proposed Increase: 4.75% across all customer categories.
- Effective Date: April 2026.
- Average Additional Cost: $130 for residential customers.
According to CEO Lori Clark, the utility is facing increasing debt projected to reach $5.7 billion due to necessary renovations at its major generating stations. Although the utility contemplated a more substantial rate increase, they opted for a modest hike to abide by commitments made in a three-year plan established in 2023. This plan outlined prior annual hikes of roughly 10% followed by the current proposed increase.
Context and Background
New Brunswick has experienced considerable rate hikes recently due to various factors, including significant cost overruns classified as “variances.” Customers were charged an additional 3% to cover these overruns, which are included in the new rate proposal.
The average household is currently paying around 30% more on their electricity bills compared to 2022. Clark indicated that the utility must balance financial stability with customer affordability. Furthermore, Premier Susan Holt expressed concerns regarding the rising rates, stating that the current status quo is unsustainable. On March 26, she emphasized the need for change in the legislature.
Future Rate Increases and Implications
N.B. Power anticipates further rate increases in the upcoming years, forecasting an additional 6.5% increase in both April 2027 and April 2028. This strategic plan arises after extending the deadline to reduce debt, adjusting from a target in 2027 to 2029.
- Future Increases:
- 6.5% in April 2027.
- 6.5% in April 2028.
Customer Reactions and Potential Changes
Customer satisfaction has declined due to escalating rates, leading to public unrest amid rising costs for everyday necessities. In response to these concerns, the utility’s interactions with stakeholders will be crucial as they navigate this sensitive issue.
N.B. Power is also considering a $4.65 fee for customers opting out of smart meter installations, illuminating another challenge as they integrate new technologies. An upcoming audit is set to further investigate discrepancies in billing practices as customer complaints regarding bill inaccuracies surge.
As New Brunswick grapples with these issues, the focus remains on how rate increases will affect residents and the overall energy landscape.
