Industry Minister says the 7% electricity increase could have been much higher

    Thursday, 1 August 2024 12:00

    By Tonya Organ

    In July of 2021, government committed to a $5.2 billion dollar plan that would cap increases at 2.25 percent annually to recover the costs of Muskrat Falls.

    Electricity bills are going up by 7 percent today. Newfoundland Power initially requested a 9.3% hike but the Public Utilities Board approved a 7% increase instead. Another potential increase of 1.5% is currently under review, and we may see an additional 12% hike in 2025. This includes a 5.5% rate increase for the 2025-26 period and 6.5% related to power supply and Muskrat Falls costs. Meanwhile, Industry Minister Andrew Parsons says this rate increase could have been much higher had it not been for Rate Mitigation as it applies to the costs of Muskrat Falls. In July of 2021, government committed to a $5.2 billion dollar plan that would cap increases at 2.25 percent annually to recover those costs. Parsons says the need for more power is nationwide and if it wasn’t for this deal the increase would be much higher. He says there are opportunities here with green energy and getting off coal. Rate mitigation provides certainty on NL Hydro’s annual electricity rate increases associated with the cost of Muskrat Falls up to and including 2030. 

     

     

    To report an error, submit a news tip, or provide feedback, please e-mail news@bayfm.ca or call (709) 637-0183.

    More from Local News

     

     

     

    BayFM recognizes support from the following agencies:

                        

    Today's Weather

    • Corner Brook

      Light rain

      High: 11°C | Low: 10°C

    • Deer Lake

      Light rain

      High: 10°C | Low: 7°C

    • Stephenville

      Light rain

      High: 10°C | Low: 9°C

    Recently Played

    Podcasts

    • BayFM On-Demand

      Trash Talk, Thursday October 30, 2025

      On this edition of Trash Talk we talk about Halloween wrappers and more

    • The Plain Truth

      The Plain Truth, Wednesday October 29, 2025

      October is Woman's History Month

    • Qalipu Today

      Qalipu Today, October 28, 2025

      On the next episode of Qalipu Today, Central Vice Chief Colleen Paul will join the conversation.