NB Power will hike electricity rates by 2% on Oct. 1

NB Power will be pushing up power rates by two per cent on electricity rates starting on Oct. 1, according to the company.

Gaëtan Thomas, the president and chief executive officer of NB Power, confirmed the rate increase on Thursday.

The rate increase will help the company with its goal of cutting its debt by $1 billion by 2021. NB Power’s annual report indicated its debt stood at $4.7 billion at the end of 2012-13.

Even though power rates are going up, Thomas said NB Power is finding ways for electricity users to save money on their electrical bills.

"We understand the impact of higher costs on New Brunswick families, which is why we are working to help customers save energy and money through the Save Twice rebate program as well as additional educational and efficiency initiatives," Thomas said in a statement.

NB Power said ratepayers in the province still have the lowest rates in Atlantic Canada despite the rate hike.

Figures released by NB Power show a home with electric baseboard heat, using 24,000 kilowatt hours a year, will pay $2,704.80 in electricity compared to $2,772 in Newfoundland and Labrador, $3,273.60 in Prince Edward Island and $3,688.80 in Nova Scotia.

This is the second rate increase since the Alward government's three-year rate freeze ended. Electricity rates were increased by two per cent on Oct. 1, 2013.

Because the increase is less than 3 per cent, it is not subject to review by the province's Energy and Utilities Board. Beginning next year, all rate increases will require EUB approval.