John Thompson
Northern News Services

Iqaluit (June 27/05) - Nunavut's power corporation is asking to further raise power rates for next year.

The Qulliq Energy Corporation has applied to the Utility Rates Review Council (URRC) to introduce a rider, or temporary increase.

The rider would be used to fund large capital projects, like plant upgrades. If accepted by the council, the rider would come into effect April 1, 2006. The announcement comes just two months after the corporation raised energy rates by 16.5 per cent.

The rider is intended to prevent "rate shock," the dramatic increases in rates experienced by communities forced to pay for infrastructure upgrades through their power bills in the past, said Energy Minister Ed Picco.

"It makes sense," he said.

The proposed increase amounts to an extra five to seven cents per kilowatt hour, although Picco added that subsidies and rebates should lessen the blow to consumers.

But Iqaluit businessman Keith Irving predicts that if the rider is applied, the extra energy costs absorbed by large retailers in Nunavut will trickle down to consumers, who will be discouraged from buying locally.

"That hurts the economy," he said.

The public should be wary that the energy corporation, which has been mired in debt since its inception, is asking for more money so soon after a rate increase, he said.

"They can't seem to do anything but ask more and more from consumers."

Irving also isn't happy with the timing of the announcement, which coincides with the summer vacations of many residents.

He's concerned the application will be pushed through without adequate public hearing.

The URRC will accept written comments about the application until August.