Predictable and Stable Rates
Electricity is essential to our lives. Even people who find ways to live without power (or “off the grid”) still use products and services that wouldn’t be possible without electricity. Sometimes we can reduce our power bills by using less energy, but we’re all impacted by changes to power rates.
That’s why after years of sharp increases in energy costs, predictable and stable electricity prices are important to Nova Scotians. Unpredictable annual increases make it hard for households and businesses to budget for their electricity costs.
Nova Scotia’s electricity plan, introduced in 2015, establishes a Rate Stability Period. It will be in place from 2017 to 2019 and will smooth fuel and other costs so that ratepayers know what to expect to pay for electricity until the end of the decade.
What is a rate stability period?
First, it’s important to understand how power rate increases happen today.
In order to increase power rates, Nova Scotia Power needs to file a rate application with the Utility and Review Board (UARB). By law, they can only file a general rate application every two years. Increases can be fuel-related (for example, to cover rising coal prices), non-fuel related (for example, to invest in repairs, upgrades, new technology or renewable energy projects) or both. The UARB holds a hearing where the utility and representatives for consumers and businesses testify and provide information related to the application. After considering all of the evidence, the UARB decides how much of a rate increase is approved, if any.
The new Rate Stability Period means rates will be set until the end of 2019. NSPI has until April 30, 2016 to file an application with the UARB if they want a rate increase for non-fuel related costs. After that date, they can’t request an increase for non-fuel costs until 2019.
The utility will also be required to file a three-year fuel plan for the same period (2017-2019) outlining fuel costs that need to be reflected in rates and its strategy to reduce volatility in fuel prices. The fuel plan will also include Maritime Link costs.
At the end of three years, in 2019, the UARB will determine whether any fuel-cost adjustments are necessary and the province will review this approach to decide if rate stability measures should continue.
Rebates & Programs
Efficiency Nova Scotia offers programs, rebates and information to help make electricity more affordable. This includes programs to improve the energy efficiency of houses owned by low income Nova Scotians, and programs for businesses, homeowners and not-for-profit organizations.
The province’s Heating Assistance Rebate Program helps lower-income Nova Scotians with the cost of home heating. As well, Nova Scotians don’t pay provincial tax on power or fuel bills helping to keep more money in their pockets.
To learn more about…
- predictable and stable rates, read Nova Scotia’s Electricity Plan (PDF 2.2 MB)
- how power rates are set in Nova Scotia, visit How Rates Are Set in Nova Scotia.
- the province’s plan for electricity efficiency, visit Energy Efficiency and Conservation