Nunavut power customers to see another rate reduction April 1

The Qulliq Energy Corp. is proposing a fuel stabilization rate refund, due to kick in April 1, 2017, which after replacing an existing refund, will provide Nunavut power customers with a net gain of 2.97 cents a kilowatt hour on their power bills. (FILE PHOTO)

The Qulliq Energy Corp.’s customers will enjoy a small rate reduction worth nearly three cents a kilowatt-hour starting this April 1, the Nunavut electrical power utility announced March 7.

The refund is intended to account for a surplus in a special pot of QEC money called the Fuel Stabilization Rate Rider, which the corporation uses to protect itself from fluctuating fuel prices.

The surplus reflect the difference between fuel prices reflected in electricity rates and the actual cost of fuel purchased by the QEC, the corporation said.

This refund will give QEC customers a price break worth 8.23 cents a kilowatt-hour between April 1, 2017 and September 30, 2017.

It will replace an existing refund rider that started Nov. 1, 2016 and expires this March 31, worth 5.26 cents per kilowatt-hour.

That means customers will enjoy a net gain of 2.97 cents in the size of the refund.

All classes of customers will get the refund, except for public housing tenants, who already pay an extra-low subsidized rate for their power.

“We would like to remind our customers that the refund will be automatically applied to their monthly power bills. Customers do not need to fill out an application form to receive the refund,” QEC’s president and CEO, Bruno Pereira, said in a news release.

Right now, the refund is technically a proposal to the minister that requires scrutiny from the Utility Rates Review Council, who are expected to provide advice on it to QEC Minister Johnny Mike.

“This is the fourth consecutive fuel rider refund that QEC has requested since November 2015. As such, I will be seeking advice from the Utility Rates Review Council regarding QEC’s application,” Mike said.