Inside Story: Premier writes N.L. Hydro to reduce July 1 power rate increase
The Provincial Government is taking action to reduce the electricity rate increase planned for July 1, 2026.
Premier Tony Wakeham has written Newfoundland and Labrador Hydro to advise them to apply a $45 million credit from the Rural Rate Alteration (RRA) account to offset the upcoming electricity rate increase relating to Newfoundland Power’s cost recovery. This move is intended to ease inflationary pressures at a time when many households and businesses are already stretched.
Without this action, electricity rates were projected to increase by seven per cent on July 1. By applying the RRA credit, the overall increase for island residential customers would be reduced to 2.25 per cent.
The RRA account was created to manage cost differences between rural and island electricity rates. In recent years, the account has built up to a larger-than-expected credit – about $45 million – due to delays in NL Hydro filing its General Rate Application during the implementation of Rate Mitigation.
Premier Wakeham has asked Newfoundland and Labrador Hydro to work with Newfoundland Power and the Public Utilities Board to ensure the credit is applied in a clear and transparent way for July 1, 2026. Government has also requested that work begin on a long-term approach for the treatment of the RRA balance on a go-forward basis.
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