‘Customers should feel comfortable’: New Brunsick leaders accept findings of smart meter review

NB Power’s CEO discussed the findings of a report on smart metres.

Leaders are telling residents to accept the findings of a recent report that showed no link between NB Power’s new smart meters and higher utility bills.

The standing committee on public accounts heard from NB Power President and CEO Lori Clark Thursday morning, as well as Jack Martin and Andrea Coish of KPMG. KPMG is the company that wrote the report comparing changes in consumption rates among customers who changed to the utility’s new smart meters from December 2023 to December 2024. A number of residents have claimed the new smart meters are overcharging them for their energy use.

“Customers should feel comfortable that we’ve ruled out a number of items,” Clark told reporters after the hearing. “We’ve ruled out the meter accuracy. We’ve ruled out customers only being charged for the electricity they are using. We ruled out that there could be a problem with the meter and billing system.”

The KPMG review said the higher-than-expected bills were caused by:

• increased power prices (new rates on April 1, 2024 made bills about 13 per cent higher)
• higher power consumption due to cold temperatures (11 per cent to 16 per cent colder in December 2024 than in December 2023)
• longer billing periods (most bills covered 1.24 more days in December 2024 than in December 2023)
• fewer power outages (68 per cent fewer outages in December 2024 compared to December 2023)

After having the chance to question KPMG about their report, Green Party Leader David Coon said he is confident New Brunswickers are getting accurate power bills.

“They will start reaching out to customers who have unusual rates of consumption, which they can see now with the smart meters and they’re going to launch a kind of a better outreach campaign to really raise the consciousness around the kinds of power consumption that different appliances and technologies in the home bring about,” Coon said.

MLA Kris Austin, who is the energy critic for the official opposition, said the report is incomplete. He said the testing was conducted by NB Power employees and wasn’t independent like promised.

“What we had called for was a review and a testing of the meters outside of NB Power’s purview,” Austin said. “That’s what we wanted to see, that’s what did not happen, and that’s what ratepayers are concerned about.”

Austin said he has no personal reason to believe the smart meters are not giving accurate readings.

Clark defended the decision to use NB Power employees. He said it is very difficult to get certified Measurement Canada testers. NB Power has two certified testers in their employment.

Clark said customers should be comfortable with the review.

“KPMG has been involved with validated data with Measurement Canada, and we validated the testing through a measurement Canada. I think it’s important to note that we are one of many provinces that are actually late to installing smart meters.

”Clark said 80 per cent of Canadians nationwide have already had smart meters installed on their homes.

Debt target removed for utility

Speaking with reporters following the committee meeting, Clark was asked about the province’s decision to remove the target date of 2029 for the utility to lower it’s debt.

NB Power’s debt is approximately $5 billion. The province has a deadline to reach 80 per cent debt to 20 per cent equity. That deadline was extended to 2029 by the previous government in 2023. The Liberal government removed the deadline on Wednesday.

“The delay in meeting the 2029 date just allows us to more gradually increase our debt equity, or improve our debt-to-equity ratio,” said Clark. “We will still be working on ensuring that our costs are covered.”

NB Power raised residential rates by 9.7 per cent in April, on top an increase of the same amount last year.

Finance and Treasury Board Minister René Legacy said deadline removal will allow NB Power to lower required net earnings, which in turn will lower the rate increase for a given year.

Clark said the utility will be applying for a residential rate increase in October. She would not comment on how much the increase will be but said it will be lower than what it would have been if the 2029 deadline remained in place.

Speaking with reporters during her weekly tariff update, Premier Susan Holt said the decision was made to give relief to residents while building a new, long-term sustainable model for NB Power at the same time.

“New Brunswickers need action now,” Holt said. “We’re taking steps like the 10 per cent discount, the removal of the 2029 deadline to provide relief while we’re doing the work that has been neglected for the last number of years.”

The Leader of the Third Party disagrees with the Liberal’s decision to remove the debt reduction target.

“We can’t just continue to kick it down the road,” Coon said. “As I’ve said in the past, if, when all is said and done this requires the province itself to address some of that debt, then it needs to do that.”

Coon said the NB Power is going down an unsustainable road with many capital demands.

NB Power will present a three-year plan by October 1 outlining it’s strategy to reach 20 per cent equity targets.

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