New electricity rates in effect in Nunavut
Territory-wide rate changes started on Oct. 1
Nunavut’s new electricity rates are now in effect, according to Qulliq Energy Corp. Minister Craig Simailak. (File photo)
New electricity rates are now in effect in Nunavut, the territory’s minister for the Qulliq Energy Corp. announced in the legislative assembly Tuesday.
Under the previous rate structure, residents and businesses were charged based on which community they were located in.
“This new territorial-wide rate structure means all customers of the same type would pay the same rate for electricity regardless of where they live,” said Craig Simailak.
The new rates, which took effect Oct. 1, are:
- Non-government residential rates at 62 cents per kilowatt hour
- Non-government commercial rates at 51 cents per kilowatt hour
- Government residential rates at 93 cents per kilowatt hour
- Government commercial rates at 87 cents per kilowatt hour
Commercial customers in Iqaluit will see an increase of 2.5 cents per kilowatt, which will translate into monthly bills that are approximately $52 higher for businesses that use 2,000 kilowatt hours, according to QEC.
Simailak said government electricity rates are now higher as well, in order to lower rates for residents and commercial customers.
“The new rates will allow the corporation to secure the revenue needed to continue providing safe and reliable energy to the territory in a way that’s more affordable for our customers,” said QEC president and CEO Rick Hunt in a news release.
“Under the previous rate structure, residents and businesses were charged based on which community they were located in.”
Insofar as residential consumers are concerned, this is a somewhat inaccurate summary. Although there technically were different rates for residential consumers in each community, a subsidy provided by the GN reduced the effective rate for all residential consumers to half of the Iqaluit rate for their first 700 kilowatt hours per month in the summer months and 1000 kilowatt hours in the winter months.
This subsidy remains in effect so while the official residential rate across the territory may now be 62 cents per kilowatt hour, the effective residential rate is 31 cents per kilowatt hour.
What were the rates before this change? Why hasn’t the reporter looked into it and provided a frame of reference for the readers? We don’t even know whether rates have increased or decreased from the content in this article. I guess I could look into it and share with everyone in the comments, but isn’t that the reporter’s job?
IT IS AN INCREASE:
Commercial customers in Iqaluit will see an increase of 2.5 cents per kilowatt, which will translate into monthly bills that are approximately $52 higher for businesses that use 2,000 kilowatt hours, according to QEC.
“Commercial customers in Iqaluit” is what it says. Which, believe it or not, is limited to only commercial customers, and only in Iqaluit. I would think that what most people are wondering is if it is an increase or decrease to residential customers in their own communities.
The only winner here is NORTHERN/ The North West Company… has anyone asked or figured out how much they will be saving on their power bill at the dozens of retail stores and hundreds of staff houses across the territory?