New year sees Nova Scotia Power rate increase take effect
Electricity bills higher by an average of 6.5% after Jan. 1, 2024
Nova Scotia Power customers will pay 6.5 per cent more on average for electricity in 2024, after a rate increase took effect on Jan. 1.
The rate hike was ratified in February last year as part of a 13.8 per cent jump to bills over two years.
At the time, increases of 6.9 per cent were forecast each year, but that has changed slightly bringing this year's change to 6.5 per cent.
Nova Scotia Power's website said at the time that customers could expect an average increase of $11 to their monthly power bills in 2024.
It explained the rate increase is necessary to "strengthen the reliability of the power system, to meet the growing demand for electricity, and to protect against increasingly severe weather."
However, concerns are being raised about another increase for an essential service during a cost-of-living crisis.
"This could be one of those straws that breaks the camel's back," said Nick Jennery, the executive director of Feed Nova Scotia.
It is taking effect at a time when more people are struggling to make ends meet and asking for help from food banks, he said.
"It's not the $11 on its own, it's the cumulative impact of all of these other cost increases, inflation, food," he said.
Programs available to help
The Affordable Energy Coalition said Nova Scotians who are struggling with additional costs can apply for provincial programs that help with home heating bills.
One of the reasons the coalition did not oppose the rate increases was because part of the deal included a provision that some of those funds are intended to go toward provincially managed energy-efficiency programs.
"There are short-term programs like the heating assistance rebate program," said Brian Gifford, who is the organization's chair. "And also for seniors, there is the seniors care grant. So those help people with their bills right away."
The seniors care grant provides $750 per household for low-income seniors who are eligible. Low and moderate-income Nova Scotians can receive $600 from the heating assistance rebate.
The province initially told CBC News it funded both programs and Efficiency Nova Scotia ran them. But the non-profit later clarified that the province does, in fact, administer both the grant and rebate programs.
Efficiency Nova Scotia also offers a variety of free energy upgrades to those who qualify for a home-warming program.
"Heat pumps can reduce your annual energy bills by up to $1,800 a year. I mean that's huge and it's a saving that goes on year after year after year," Gifford said.
More action needed, NDP says
NDP Leader Claudia Chender said the rate increase is disappointing and does not reflect the level of service people are receiving.
"We have incredibly expensive power, we have incredibly dirty power and we have incredibly unreliable power," Chender said. "And since Tim Houston was elected, we pay 14 per cent more for that privilege. Something's wrong."
Much more needs to be done, Chender said, starting with improving the heating assistance rebate program she said is taking too long to pay out.
A universal service program is something her party has wanted for years. That would allow the provincial regulator to include affordability among the criteria for setting power rates.
Nova Scotia Power says it is aware rates increases can be challenging at a time when the cost of living continues to rise.
NSP says it works with customer advocates, including the Affordable Energy Coalition, and the province on ways to ensure there is support for people on lower incomes.
The first customer e-bills for 2024 go out on Thursday and will have the updated average rate increase for customers.
ABOUT THE AUTHOR
