Central Nova MP Sean Fraser says a large rate hike by Nova Scotia Power has been warded off, with an intervention from the federal government.
Nova Scotia Power photo
Fraser says the utility was looking at an increase of 19 per cent because of cost overuns due to delivery delays of Muskrat Falls electricity. Fraser says as a result, the utility had buy other energy at a higher cost, and NSP was looking a rate hike to recoup that.
In a filing to the Utility and Review Board on Wednesday, NSP confirms that without the loan, the average rate hike would be 19.2 per cent. However, with the bailout, next year’s average increase would be 2.4 per cent