Manitobans will be paying more for electricity in 2026. The Public Utilities Board announced Tuesday it has approved an interim 4 per cent general rate increase for Manitoba Hydro starting January 1. The increase applies to all customers, except for classes in Manitoba Hydro’s diesel zone. Manitoba Hydro was asking for a 3.5 per cent rate increase each year for the next three years in its initial application. However, PUB said the increase is needed to protect the “financial health” of Hydro due to the impacts of a severe drought. “Water flows into Manitoba Hydro’s watershed are currently at the second-lowest level in 112 years,” PUB said in a news release. “As a result of the severe drought, Manitoba Hydro’s financial metrics have deteriorated by more than $625 million.” The board says it expects final rates for 2026, and 2027, will be approved next year. Manitoba Hydro’s most recent rate increase was one per cent in April 2024. The provincial government froze Hydro rates in 2025 as an affordability measure.
