N.B. Power seeking rate hikes of almost 10 per cent in 2024, 2025

N.B. Power is asking the province's Energy and Utilities Board to approve 9.8 per cent rate increases for residential customers in each of the next two years.

The Crown corporation says it needs the hefty hikes now, to set the stage for chipping away at its massive debt before a provincially required target in 2029.

"The requested increases are necessary to allow N.B. Power to fulfil its core responsibility, and to make modest improvements in its financial health," says the application.

"N.B. Power is concerned about affordability for our customers as they face a variety of inflationary pressures and recognizes that many customers will be challenged by this proposed increase."

An additional three-per-cent increase in April 2024 because of a cost variance account, and the end of a rebate this year from the same account worth 0.9 per cent, will bring the total residential rate increase to 13.7 per cent next year.

Most of that additional increase is due to the Point Lepreau nuclear station being out of service for an extended period last winter.

Energy Minister Mike Holland acknowledged that a 13.7 per cent hike will be difficult to swallow but he defended the utility's decision to set the figure it needs to address its debt. 

"Nobody wants to see something like that, but it is a part of the process of the utility properly putting together a rate increase request," he said.

Holland also said he'd resist any pressure for the government to legislate a lower rate.

"I would absolutely not advocate for intervening on what a rate increase should be. I haven't from day one, and it is difficult when you see that," he said.

"What I would advocate for is the continued work ... to find ways to offset what that rate increase would be." 

That could come in the form of more funds for existing subsidy programs or new "avenues" for helping New Brunswickers who can't afford the increases.

N.B. Power also plans to launch a new service to direct its customers toward the various assistance programs that are available.

Nichola Taylor, the chair of the housing advocacy group New Brunswick ACORN, called the increase "the last thing people in New Brunswick need."