Higher power rates take effect in Nunavut while awaiting cabinet approval

Electricity bills in Nunavut have gone up as Qulliq Energy Corp. is lobbying the federal government to mitigate the rising cost of providing power in the territory.

“We don’t take any pleasure out of increasing electricity rates,” John Main, the minister responsible for Nunavut’s electricity provider, said Friday in an interview at the legislative assembly.

“Cost of living is already so high, but what this is about at the end of the day is making sure that Qulliq Energy has enough revenue to pay for our expenses.”

The territory’s Utility Rates Review Council approved QEC’s application to increase the rates in mid-April, Main said. The higher rates took effect April 1 on an interim basis, awaiting final approval from the cabinet.

Main said the increase, if approved by cabinet, will be enough to cover shortfalls in funding QEC’s operations while keeping rates as low as possible.

If the final rates are set lower than the interim rates, the difference will be refunded, said a news release from Qulliq Energy Corp.

On their latest power bills received in mid-May — the first to include the new interim rates — Nunavummiut saw a 9.5 per cent rate increase.

That works out to about a $14 monthly increase for residential customers in non-government housing who use 500 kilowatt-hours of electricity per month, according to QEC. For residents in government housing who use 2,000 kilowatt-hours per month, the increase is about $71.

Commercial customers in non-government properties saw increases of about $156 monthly based on 500 kilowatt-hours of electricity, while those in government properties saw about a $235 increase based on 2,000 kilowatt-hours.

As well, service charges have doubled. For commercial customers it rises to $16 per kilowatt, from $8; and for residential customers it goes to $36 per month, up from $18.

However, the residential service charge is fully covered by the Nunavut Electricity Subsidy Program and customers are not billed for it, according to QEC’s news release.

The increase comes as the Nunavut government and Qulliq Energy have been trying to lobby the federal government to provide more financial support to the corporation, including covering a portion of QEC’s $228-million debt, some of which dates back decades, Main said.

“I’d like to think that there’s progress,” Main said.

“We continue trying to educate our federal partners around the uniqueness of Nunavut, the challenges we have and the huge need for federal support.”

Earlier in May, Main announced QEC is in the process of building or planning to replace diesel-powered generators in Cambridge Bay, Gjoa Haven, Igloolik, Kugluktuk and Kugaaruk.

The corporation has been communicating with several federal departments including Natural Resources Canada; Housing, Infrastructure and Communities Canada; the Department of National Defence; and Environment and Climate Change Canada.

“With all the talk these days around Arctic sovereignty and security, we’ve been sharing our viewpoint that if you want Arctic security, if you want Arctic sovereignty, then you need energy security,” Main said.

“And in many of our communities, we are struggling.”