Low-income advocates protest NB Power’s 9.7 per cent rate hike

NB Power's nearly 10 per cent rate hike took effect on Tuesday.

A small, but passionate group of people gathered in downtown Moncton, N.B., Tuesday afternoon to protest NB Power’s latest rate increase.

NB Power raised residential rates by 9.7 per cent – the same increase that was applied a year ago on April 1, 2024.

The Crown corporation applied for a two-year general rate application in December 2023 and the New Brunswick Energy and Utilities Board approved the changes last November.

Members of the Association of Community Organizations for Reform Now (ACORN) held a rally on Main Street to advocate for the end of energy poverty.

“We know that for people of low and moderate income there is no way they can afford it,” said ACORN co-chair Peter Jongeneelen about the rate increase.

Jongeneelen realizes NB Power has its share of issues right now, but he would like to see the service utility do something to make sure people can make ends meet while keeping the lights on.

“Nobody should ever have to make a choice between food, rent, groceries and hydro,” said Jongeneelen.

NB Power president and CEO Lori Clark said over 50 per cent of the rate increase is attributed to improving reliability of generating systems across the province, as well as vegetation management, but there are several other reasons.

“Our transmission system, our distribution system, our customer service that we’re providing as well as modernizing our grid to take into account things like population growth, the clean energy regulations that we’re working towards. Our aging infrastructure that we’re dealing with and climate change as well,” said Clark.

Clark said NB Power is committed to improving reliability for all New Brunswickers and it’s the utility’s responsibility to ensure reliable service is being provided to customers when they need the electricity.

Some NB Power customers who spoke to CTV News in Moncton believe the increase is too much and unfair.

“It is quite high, but I feel with aging infrastructure and inflation that’s out there, NB Power is stuck between a rock and a hard place I think for what they’re going to need to do in the future,” said Peter Graves.

Christopher Underhill said the rate hike is tough for many customers to handle.

“There’s so many people that are struggling with getting their regular rent paid, they don’t need to be doing that,” said Underhill.

Matthew MacDonnell pays rent plus utilities.

“This is going to affect me and a lot of other people that don’t have that included on their rent,” said MacDonnell.

Clark understands it’s a difficult time for everyone in the province.

“The cost of everything is going up, including electricity,” she said.

Clark said the challenge NB Power is facing as a utility is covering the costs of providing service.

“We are basically break-even in terms of our revenues, covering our costs as a cost-of-service utility, and we need to raise rates to cover the cost of delivering the service,” said Clark.

Jongeneelen is hoping NB Power will have a good look at different programs that will help people struggling to pay their bills.

“Something that would be a discount for people of a lower income. Seniors, disabled folks, these sort of things,” said Jongeneelen.

A number of energy efficiency programs are available, as well as equalized payment plans, Clark said.

“Disconnect for non-payment is a last resort, always a last resort for us, so we want to work with our customers to put together payment plans that are manageable for customers so that they can continue to pay their bill and keep their electricity service,” said Clark.

For more assistance in reducing bills, Clark is encouraging customers to reach out to their contact centre to put together payment plans.

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