Newfoundlanders and Labradorians will be paying more for power come Oct. 1 after the Public Utilities Board approved Newfoundland and Labrador Hydro's new customer rates this week.
Customers of both NL Hydro and Newfoundland Power on the island portion of the province will see a 6.4 per cent increase in rates. That equates to approximately 0.8 cents/kilowatt hour (kWh) or about $6.40 for every $100 on an electricity bill.
In a release announcing the hike, NL Hydro says the primary factor is increasing fuel costs at the Holyrood thermal generating plant. Since rates last changed in 2018, the cost of a barrel of oil has risen from from $86 CDN to $106 CDN for 2019.
"Since rates last changed in 2018, there has been a 23% increase in the forecast price of oil used at the plant," the release states. "Further, there is an increase in the expected volume of oil that is used at Holyrood to reliably operate the province’s electricity system."
Meanwhile, residential customers on the Labrador interconnected system will see a decrease of 3.1 per cent, about .1 cent per kWh or $3.10 for every $100 on a bill.
"Increased customer usage and growth is resulting in a rate decrease for most residential customers (on the interconnected system in Upper Lake Melville and Labrador West)."
Island customers in isolated rural communities and Labradorians living in isolated regions, both serviced by diesel generation, will see a 6 per cent increase.