NB Power works hard to forecast the costs of delivering electricity for the upcoming year. These forecasts consider various factors, including energy consumption, weather, commodity prices, exchange rates and hydro flows. However, variances can occur due to factors beyond NB Power’s control, leading to additional revenue or losses.

In 2021, changes to the Electricity Act introduced a Variance Account Recovery (VAR) mechanism to provide greater transparency for customers and ensure electricity costs are accurately reflected in rates.

Each year, NB Power is required to file a VAR application with the New Brunswick Energy and Utilities Board (NBEUB). This mechanism allows for rate adjustments:

• If actual costs are lower than anticipated, customers may receive a credit.
• If actual costs are higher than anticipated, rates may increase to recover the difference.

Variance Account Recovery (VRA) Filing

On December 15, 2025, NB Power submitted its annual update on the Variance Account Recovery mechanism, which adjusts for variances between budgeted and actual costs largely outside NB Power's control. For the fiscal year starting April 1, 2026, the VAR charge, if approved by the NBEUB, will be 0.04¢/kWh more than the current charge. A hearing on the matter is planned for February 20, 2026.

What This Means for Customers

For the fiscal year starting April 1, 2026, the VAR charge, if approved by the NBEUB, will be 0.04¢/kWh more than the current charge. For the average residential customer, this means an increase of about 54 cents per month.

How to Manage Your Energy Costs

We understand rate changes can be challenging. That’s why NB Power offers resources to help customers manage energy usage and costs:

• The Enhanced Energy Savings Program provides free heat pumps and insulation to eligible households. 
• Equalized Payment Plans help customers budget with predictable monthly payments. 
• Payment assistance resources are available for those in need.