Electricity rates will increase for most customers on July 1, says N.L. Hydro

Electricity rates in Newfoundland and Labrador will increase for most customers Saturday, according to Newfoundland and Labrador Hydro.

The changes are the result ofN.L. Hydro's annual rate adjustment,which happens each yearon July 1.

Hydro made therequest for the adjustmentin April. It'sindependent ofany changes that will come from rate mitigation and paying for the Muskrat Falls hydroelectric project.

In a press release on Wednesday, N.L. Hydro said rate increaseswillbebetween3.4 per centand 6.7 per centfor residential customers and between seven and 8.4 per cent for commercial customers.

"We know customers continue to be concerned about electricity rates," reads the press release."Our priority is to provide safe, cost-conscious and reliable services while meeting our commitment to a net-zero electricity system."

The rate changes are connected to fuel costs from previous years that haven't been collected through the existing rates, the company said.

The province's rate stabilization plan,which was created to ensurerates reflect the cost of generating electricity year over year,also plays a factor.

Meanwhile, Newfoundlanders and Labradorianscan expect to see prices increase under thefederal carbon tax, also set to come into effect on Saturday.

The carbon tax will add14 cents per litre togasoline and diesel, and people whoheattheir homes with furnace oil more than 40,000 homeowners in Newfoundland and Labrador will see an extra 17 cents per litre on their bills.

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