Nunavut power rates rising 19 percent

Qulliq Energy rate hike takes effect April 1 in Nunavut, lifting base electricity rates 18.9 percent. Residential customers face about $7 more per month, as the utility addresses a $13 million shortfall and plant upgrades.

Nunavut's power utility has the go-ahead to boost power rates by almost 19 per cent, meaning customers will pay more on their upcoming bills.

Qulliq Energy Corp. says it has been authorized by the territorial government to raise its base rates by 18.9 per cent for all customer classes effective April 1, as outlined in the Nunavut rate hike coverage, meaning customers will see the increase on their April power bills.

But most homeowners will see only a modest increase, according to Qulliq Energy spokesman Eddie Rideout, while Québec residents face increases of their own this year.

"The difference in what a customer was paying, say, in February-March of this year, compared to what they'll pay in April, is actually quite marginal," Rideout told CBC News.

"For the average customer, I guess it'd be about $7 a month."

The 18.9 per cent rate hike will replace a six per cent interim increase that came into effect in October, similar to a Hydro-Québec rate hike discussed recently, so residential customers should see a net increase of just 2 1/2 per cent, according to Qulliq Energy.

Qulliq Energy is facing a $13-million revenue shortfall this year, pressures similar to a Yukon Energy rate request in the North, and it needs to replace or upgrade several power plants around the territory, Rideout said.

"This increase will bring our revenue in line with our expenses," Lorne Kusugak, the minister responsible for Qulliq Energy, said in a release.

"This provides a true indicator to our customers of the true cost of their energy."

The Nunavut government is giving Qulliq Energy a cash infusion to balance its books this year, a contrast to the Québec government endorsing a rate hike, so it won't have to recoup the revenue shortfall from customers, according to officials.

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