Politicians condemn Nova Scotia Power’s proposal to hike rates over next 2 years
Nova Scotia Power has announced plans to seek approval for rate increases in 2026 and 2027 to fund $1.3 billion in upgrades to the electricity grid. The proposed rate hikes would see residential rates increase by around 4.1 per cent annually, with commercial and industrial customers facing smaller increases, resulting in an average rate hike of 2.1 per cent. These increases would come into effect on January 1 of each year.
The utility has stated that the rate increases are necessary to cover the costs of maintenance and improvements to ensure the grid’s reliability and to meet the company’s target profit margin. A general rate application will be filed with the Nova Scotia Energy Board in the coming weeks, giving the regulator the opportunity to review and approve the proposed rate hikes.
The announcement has sparked backlash from provincial politicians, with Nova Scotia Premier Tim Houston criticizing the utility for being “out of touch” and calling for the proposed rate increases to be reconsidered in light of a recent cybersecurity breach that exposed the personal information of hundreds of thousands of customers. Opposition parties have also condemned the rate hikes, with NDP Leader Claudia Chender describing them as “unmanageable” and questioning the government’s handling of power rates.
Despite the criticism, Nova Scotia Power maintains that the rate increases are necessary to fund critical reliability investments in the grid, including storm hardening, vegetation management, and grid modernization. The proposed rate hikes are part of a five-year plan to ensure the continued reliability of the electricity grid.
Overall, the proposed rate increases have sparked controversy and debate in Nova Scotia, with stakeholders on all sides weighing in on the potential impact on customers and the utility’s operations. As the application makes its way through the regulatory process, stakeholders will continue to monitor the situation closely.
