Large electric bills, rising rates has one Dawson City man saying electric company choosing profit over people

A Dawson City, Yukon man said he feels Yukon Energy is treating its customers unfairly by raising rates while some people are struggling to pay larger than normal bills due to an internal administrative problem.

On July 1, the Yukon Energy Corporation enacted a 10 per cent rate hike, with another one planned for Jan. 1, 2026.

The first rate increase comes one month after Yukon Energy said it had finally gotten its billing system and staff shortage problem resolved. Those issues had resulted in monthly bills being delayed and customers receiving bills with several months of charges at once. 

Robert McDonagh moved into a small cabin in Dawson City last October.

During that time the company's only meter reader for the Dawson, Mayo, and Faro region quit, so meters weren't being read, and power usage was being estimated not determined by reading the meter.

McDonagh said he received his first bill from the company in June, eight months after becoming a customer.

"The bill came and it was quite large and a bit of a shock," McDonagh said. "I didn't understand why I'm getting one bill for just under a thousand dollars all at once."

McDonagh said he was given the option to pay the amount in instalments but that still puts him under financial strain.

"Now I have to spend all of this winter paying off last winter and this winter and I don't have a lot of money," he said.

McDonagh said the 10 per cent rate increase is also now adding an extra strain on his already stressful situation. He said his July bill has a charge of $100 but he doesn't understand how he's paying so much for so little usage.

"I have no heat on," McDonagh said. "I run a fridge. I haven't used any hot water for the past month. And I eat at my work so at night I might make a cheese bread and that's it. And there's no lights needed because it's so bright. So I'm wondering what it is I'm paying a hundred dollars for."

CBC News reached out to Yukon Energy Corporation for an interview.

Instead, the company sent an email acknowledging the past several months have been frustrating for customers.

The company cited staff shortages and issues with its billing system as the reason why customers received bills for electricity used over several months. It said that as of June 99 per cent of customers had received their bills.

Yukon Energy said the rate hike is to pay for critical upgrades. 

But for McDonagh, the company's response doesn't do much for him, or his situation. He said  Yukon Energy should be helping customers impacted by its internal issues, not creating more of a financial burden for them.