NDP delays PC bill to cap hydro rate hikes over privatization concerns

NDP delaying bill to cap hydro rate increases The bill tabled last month would set a maximum increase of five per cent or the rate of inflation, whichever is lower.

Winnipeg — The Manitoba NDP says it's delaying a Progressive Conservative bill that would cap hydro rate increases.

The bill tabled last month would set a maximum annual increase of five per cent or the rate of inflation - whichever is lower.

The bill would also let the provincial regulator set rates for three years at a time instead of holding hearings every year.

At the time, Manitoba Finance Minister Cameron Friesen said both measures would keep costs down for customers, but the NDP said that's not the case.

“It's looking like this is going to be the start of five per cent increases at hydro year after year,” said Manitoba NDP Leader Wab Kinew.

“We think that’s the wrong approach because not only is it going to hit you in the pocket book, but it’s also going to make it more difficult for Manitoba Hydro to treat their workers fairly."

The New Democrats say the bill also opens the door to privatization.

In a statement to CTV News Winnipeg, Friesen called the delay a disappointment.

"This bill is designed to protect ratepayers by keeping annual rate increases affordable, putting hydro on a path to stability and giving the PUB additional oversight on future hydro mega projects,” the statement said.

Friesen went on to say his government will continue to advance the bill.