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Flat Energy Rate for Residential Customers
Background
The declining block rate structure was set so that customers who consume more than 1300 kWh of electricity per billing period pay a lower rate for the balance of their consumption. This rate structure, which affects approximately one-third of residential customers, was a common practice that many utilities are phasing out.
In February 2008, the Energy and Utilities Board (EUB) made a decision which required that the declining block rate discount be eliminated by April 2010 and recently extended to June 1, 2010. After being thoroughly discussed at the EUB with the various interveners, it was decided that the declining block rate should be eliminated to provide a better pricing signal for electricity.
On March 28, 2008, NB Power took the first step in eliminating the declining block rate by reducing the discount in the two blocks. Another step taken was the introduction of the residential flat rate applied to newly constructed single-family dwellings on or after January 5, 2009. The discount in the two blocks was reduced again on April 1, 2009
Next steps
Effective June 1, 2010, NB Power will be removing the declining block rate discount. This means that all customers will pay the same rate regardless of consumption. We are providing this information to assist our customers during this transition.
