New Brunswick

No fooling: N.B. Power rate hike April 1 to cost average residential customer $244

N.B. Power's latest rate increase went into effect early Tuesday and will add about $244 in higher charges for residential customers this coming year, according to the New Brunswick Energy and Utilities Board.

Premier promises action as average households cope with $645 in higher charges in 3 years

Woman speaking surrounded by microphones
New Brunswick Premier Susan Holt says she has been hearing a lot from residents upset about their rising power bills. The message is: 'It needs to change.' (Stephen MacGillivray/The Canadian Press)

​N.B. Power's latest rate increase took effect early Tuesday and for an average residential customer it will add about $244 in higher charges in the coming year according to a recent decision of the New Brunswick Energy and Utilities Board.

The board held hearings into the rate increase last year, but had been waiting to finalize amounts so it could calculate and add in a surcharge that customers are to be billed to help retire past over-expenditures by the utility.  

Those surcharges were approved two weeks ago and incorporated into a new rate table and schedule all, of which was set to take effect April 1.

"The Board has reviewed the revised and refiled table and has determined that it complies with the Board's direction," acting EUB chair Christopher Stewart wrote on March 21 in a final order that cleared the way for all elements of the new rate package to be implemented.

Lori Clark and Darren Murphy sit in the legislature conversing with one another
N.B. Power officials, from left, CEO Lori Clark and Darren Murphy, the chief financial officer, spoke to MLAs at the end of February. They were to deliver a detailed report on what caused a spike in power bills this winter but said it couldn't be done in time. (Jacques Poitras/CBC)

According to data filed by N.B. Power with the EUB, its average residential customer consumes about 16,000 kilowatt hours of electricity a year.  At that level, under the new rates, an urban household will pay $2,781.80 for electricity in the coming year, not including taxes.  

That is $244 more than last year. It is also $645.20 more than three years ago following increases in April 2024 and April 2023.

The changes still leave N.B. Power with some of the lowest rates for electricity in the region outside Quebec. But with the utility's prices rising 30 per cent in three years, consumers have not been in a mood to look at silver linings.

WATCH | Up, up and away: Why electricity rate increases have reignited debates over the role and future N.B. Power: 

How electricity rates have become a symbol of New Brunswick’s affordability problems

2 days ago
Duration 2:23
N.B. Power rates for residential customers are lower than those in most neighbouring jurisdictions, but they have also risen 30 per cent in three years. The escalations are stinging weary consumers, which has the Holt government promising action of some kind, soon.

Last week, New Brunswick Premier Susan Holt expressed frustration with the parade of rate hikes and announced a government review of N.B. Power will soon be undertaken with all potential solutions, including a sale of the utility, up for discussion.  

She promised widespread public consultations will be a central part of that effort.

"I am not going to assume that I know what every single New Brunswicker thinks about N.B. Power," said Holt.  I certainly know what I hear them telling me right now — it needs to change. The rates can't keep going like they're going now and the status quo cannot continue."

A man ina  suit stands at a podium on a stage.
Last month, New Brunswick Finance Minister René Legacy presented his first budget. It projected net earnings of $4.7 million for N.B. Power for the fiscal year just ended, 93 per cent below the utility's original estimates. (Mike Heenan/CBC)

The price of electricity has emerged as a major political issue even though the latest increase was not a surprise.

It was originally proposed by N.B. Power in December 2023 and has been subject to scrutiny and debate for the last 15 months. 

During October's general election, N.B. Power's future was not a major issue campaigned on by any party, but a series of events in February suddenly elevated concerns about its troubles.

In mid-February, the province lowered its estimate of expected net earnings at N.B. Power for its most recent financial year by $59.3 million after another disappointing year of production at the Point Lepreau nuclear generating station.  

A sign reads Welcome to Nova Scotia in both English and French. There is snow on the ground and the sun is setting in the distance.
Power rates in New Brunswick remain cheaper than those next door in Nova Scotia, despite rising 30 per cent in three years. (Brett Ruskin/CBC)

Days later, J.D. Irving Ltd announced it was cutting production in half at its Saint John paper mill and blamed rising electricity costs. Days after, utility executives disappointed MLAs by failing to complete a report on why bills to residential customers this winter have been so much higher than many expected.

Last week, following those controversies, Holt said her government had investigated whether it might be able to cancel, delay or reduce the coming increase but decided it was not legally feasible. 

"We were looking at mechanisms to unravel the EUB decision, but there is not a lot at our disposal to affect April 1 right now," Holt said.

An urban consumer of N.B. Power who uses 16,000 kilowatt hours of electricity this year will pay $354.60 in monthly service charges, $2,361.60 for the volume of electricity consumed, and a "rate rider" of $65.60 to help pay for financial troubles the utility encountered in previous years, most notably for problems encountered at Point Lepreau.

All three of those amounts are higher than last year.

Rural customers are charged higher monthly service fees than urban customers and will pay an additional $34.56 per year.​

ABOUT THE AUTHOR

Robert Jones

Reporter

Robert Jones has been a reporter and producer with CBC New Brunswick since 1990. His investigative reports on petroleum pricing in New Brunswick won several regional and national awards and led to the adoption of price regulation in 2006.