Around the world and at home, energy utilities are facing a multitude of challenges that are resulting in a tremendous degree of change in the electricity sector overall.

We need a reliable, sustainable electricity system to deal with the issues we are facing today and those that will occur in the future as industries and customers increase their use of electricity, as we deal with population growth and at the same time replace several assets in our fleet as they retire or are required to be replaced to provide cleaner, greener energy solutions for our customers.

At the same time, we are concerned about affordability for our customers as they deal with increasing costs of everything. Electricity is not a luxury item and we know that it provides quality of life for New Brunswickers. We are doing everything possible to manage our cost increases.

On December 15, 2023, NB Power submitted a General Rate Application to the New Brunswick Energy and Utilities Board (EUB) requesting an increase to base power rates that will impact all customers. The rate application material is available on the EUB website by searching Matter #552.

This filing is separate from the Variance Account Recovery filing also submitted on December 15, 2023.

Why are rates going up?

NB Power is a cost-of-service organization. Here in New Brunswick, the fact that rates were held lower than they otherwise should have been has resulted in artificially low rates. As a result, we are struggling to cover the costs of operating our system and providing the services New Brunswickers need and expect.

How much is my rate going to go up?

The utility filed a two-year General Rate Application to provide New Brunswickers with as much predictability as possible in the years to come. The application is based on the expected costs for the 2024/25 and 2025/26 budget years. If approved, residential customers will see a 9.8 per cent increase in year one and a second 9.8 per cent increase in year two. 

When will the new rate take effect?

The application is currently going through an independent, rigorous review process by the EUB, giving customers and others an opportunity to offer feedback.

As part of this application, on January 29, 2024, NB Power filed a motion with the EUB requesting approval of an interim rate increase starting April 1, 2024. This motion asked to increase rates on an interim basis only, pending the EUB’s final decision on the matter.

On March 15, 2024, the EUB granted NB Power’s interim rate increase request. The total average increase for residential customers is approximately 13.2% for a 12-month period starting on April 1, 2024. Our business customers will see a total increase of 11.5% for small businesses and 15.3% for large industrial customers. For all customers, the total increase is a combination of an increase to the General Rate and a change to the Variance Account Recovery charge.

This charge could change when the EUB makes a final decision on our General Rate Application this summer. If the final approved rate is lower than the interim rate, we'll adjust bills as required by the EUB.  

How will this rate increase impact me as a customer?

The total average increase for residential customers is approximately 13.2% for a 12-month period starting on April 1, 2024. This includes an increase to the General Rate of 9.8% and the remainder is related to the Variance Account Recovery charge.

This will result in a net average increase of $25.47 month for the average residential customer. 

This charge could change when the EUB makes a final decision on our General Rate Application this summer. If the final approved rate is lower than the interim rate, we'll adjust your bills as required by the EUB.

We know that any change in rates might raise questions about where your money goes. The revenue from these increases, if the final rate is approved by the EUB, will mainly be invested in improving your reliability. We are upgrading our aging infrastructure and focusing on long-term energy security here in New Brunswick.