Qulliq Energy Corp. applies for electricity rate, service charge hike
Nunavut electricity supplier cites higher operating costs as need for increase
Qulliq Energy Corp. is seeking an increase in monthly service charges for residential customers from $18 to $36, from $8 to $16 per kilowatt hour for commercial customers and to increase the energy rate by 9.5 per cent. (File photo)
Nunavut’s electricity generation company is asking the territorial government for an increase to monthly service charges and rates.
Quilliq Energy Corp. submitted a general rate application on Wednesday, which will be reviewed by the minister responsible for QEC with input from the territory’s Utility Rates Review Council.
The proposed changes include an increase in monthly service charges for residential customers to $36 from $18, and for commercial customers to $16 from $8 per kilowatt hour.
QEC is also seeking to increase its electricity rate by 9.5 per cent.
If approved, the changes would go into effect April 1, 2025.
“The operational costs that are required to generate electricity in Nunavut currently are higher than the revenue that we’re collecting from our customers,” Ernest Douglas, president and CEO of QEC, said during a news conference Thursday.
Douglas cited inflation, maintenance of aging infrastructure, diesel fuel, transportation and other administration-related fees as reasons for the proposed increase.
He said there will be “minimal impact” to residential customers because the service charge is covered by the territory’s electricity subsidy program and that 50 per cent of the energy rate is also subsidized.
“We’re really trying to make the impact on Nunavummiut folks that are feeling the most pressures as little as possible,” Douglas said.
Nunatsiaq News contacted the territory’s Utility Rates Review Council but it is unable to comment on applications.
The council is seeking public feedback and invites Nunavummiut to submit their comments to URRC@gov.nu.ca by 5 p.m. on Jan. 24.
I think QEC should be treated same way as PPD and give them extra 20 million power rider-similar to the fuel rider so there is no huge increases on the spot.. fluctuate cost so it is not a painful increase….
It is called the Fuel Stabilization Rate (FSR) Fund. You are currently paying an FSR Charge that will be ended soon IF this General Power Rate increase is approved.
Importantly the General Power Rate is subsidized (you only pay around half of it), while the FSR Charge is unsubsidized.
Maybe they should look at their operating costs.
Their employees have the highest wages and benefits of the entire North.
We know they need to retain their employees but there is some fat that could be cut there
Thank you
I’m told QEC paid wages in absolute terms less than other jurisdictions do for skilled workers. Part of the reason we keep getting outages in Iqaluit and across Nunavut is we can’t keep skilled workers when we pay less than elsewhere.
If we want reliable, skilled workers we need to be competitive, if not pay more than other power utilities.
It’s true. When you look at what skilled trades people make in the south, compare it to what equivalent positions at QEC make, and make adjustments for cost of living most of the trades are either on par with the south or actually lower.
Management makes good pay, but it’s still nothing out of the ordinary when compared to what management at electrical utilities make in the south and on top of that many of the management positions at QEC would be two or three different positions in the south.
The Corporate and Engineering Department earns significantly more than the CGS Engineering Department, often requiring unnecessary overtime. Meanwhile, those who are actually in the field doing the work are overlooked and not recognized for their contributions. The upgrades made in Nunavut were entirely funded by the Federal Government.
Additionally, QEC continuously borrows from GN for its operational needs, yet GN has not conducted an internal audit on QEC’s spending.
QEC is not a GN dept therefore does not receive government funding. This comment is incorrect. QEC is funded by 100% by ratepayers (thus the application to increase rates to cover increased costs).