Saint John Energy customers will notice a rate increase on their next electricity bill, the utility has confirmed.
The Energy and Utilities Board granted a 5.7 per cent rate hike to NB Power last week, effective April 1.
Board members also approved a 0.9 per cent rate reduction, for a net increase to customers of 4.7 per cent.
Saint John Energy, which buys much of its electricity from NB Power, has also hiked its rates as a result.
“Like NB Power, our rates for electricity are increasing by 5.7% and, like NB Power, our customers will see a credit on their monthly bills this year because of the NB Power rate rider,” Jessica DeLong, a spokesperson for Saint John Energy, said in an email.
Rate riders are credits or charges to electricity users based on the difference between a utility’s budget and actual financial results. This means if a utility performs better than its budget for energy costs by a minimum threshold, the rate rider will be a credit.
Saint John Energy customers will see a credit of 0.09 cents per kilowatt hour on all electricity purchased as of April 1, significantly less than the 12 cents per kilowatt hour NB Power customers will be reimbursed.
“Our calculations are designed to pass on to our customers the rate rider credits or charges that apply to our electricity purchases from NB Power in any given year,” said DeLong. “Rate riders do not apply to electricity we purchase elsewhere, such as the Burchill wind farm.”
According to Saint John Energy, an average residential customer using 1,350 kWh per month will see a $9.25+HST increase on their bill, offset by a $1.22 rate rider credit.
Water heater and heat pump rentals through Saint John Energy are not affected by the increase, said DeLong.
Even with the increase, Saint John Energy’s electricity rates are still about seven per cent lower than NB Power. Saint John Energy charges 11.28 cents per kWh while NB Power charges 12.15 cents.
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