QEC wants two-month extension of surcharge
Nunavut fuel prices still not set
The Qulliq Energy Corp. wants a two-month extension of a special surcharge that Nunavut power customers have paid since last November.
Called a “fuel stabilization rider,” the special surcharge is aimed at protecting the corporation from sudden increases in fuel prices
The current fuel rider expires Sept. 30. During that period, it added an extra 3.98 cents a kilowatt hour to power bills for all customers in all Nunavut communities.
But the QEC wants to extend it, for the months of October and November, and last week sent an application to Energy Minister Ed Picco.
That’s because the Department of Community Government and Services has not yet announced this year’s Nunavut fuel prices. Tankers are still delivering fuel to many Nunavut communities, and the GN will not know the final costs until after that work is done.
So to be on the safe side, the power corporation is asking for the two-month extension to ensure they aren’t blindsided by a rapid fuel price increase.
Money raised by fuel riders is put into a special pot of money called the “fuel stabilization fund.” When the amount of money in that fund drops below $1 million, the power corporation is allowed to impose a fuel rate rider to bring it back up to the $1 million point.
“QEC has been asked to simply apply to extend the existing riders rather than speculate on potential prices for 2006-07…,” their application reads.
In theory, a fuel rider may turn into a rebate if the power corporation manages to extract more than it needs through use of a fuel surcharge, but this rarely happens.