Andrea Markey
Northern News Services

Iqaluit (Sep 05/05) - The Iqaluit Chamber of Commerce has launched a campaign to challenge a proposed power rate increase by Qulliq Energy Corporation.

The Energy Corp., on behalf of Nunavut Power Corporation, made the request on May 27 to the Government of Nunavut.

If approved, the increase will add $8 million a year to consumers' bills when it takes effect April 1, 2006, said Ken Spencer, president of the chamber.

A temporary surcharge of between 5.648 and 7.04 cents per kilowatt-hour would be added to all power bills across Nunavut. Some customers may find relief from subsidy programs. This application comes after a rate increase of 16.5 per cent earlier this year.

The chamber is circulating an extensive information package to businesses and residents outlining its concerns.

The deadline for public comments to the Utility Rates Review Council was Aug. 31.

The chamber is urging Energy Minister Ed Picco to allow for more time for public input.

Picco previously extended the deadline for public comments to Aug. 31 from Aug. 5. Several requests to have the deadline extended have been made, including one from the Nunavut Association of Municipalities on Aug.5.

Not enough time

The allocated time was not enough for Nunavummiut, many of whom are out on the land in the summer, to properly consult on the subject, said Spencer.

In addition, the application process does not allow for public consultations or written requests for information other than from the Utility Rates Review Council, he said.

Another of the chamber's concerns is that the public should have the chance to see the results of an independent review of the operations of Qulliq, due in December, before having another increase forced on them.

The high cost of living and doing business in the North requires businesses to plan and prepare, as much as possible, for increased costs especially in light of increased fuel charges, said Spencer.

As of Sept. 1, all fuel products increased 9.6 cents per litre in Nunavut to reflect increasing world oil prices.

Qulliq attributes the requested rate increase to the cost of maintaining and purchasing new power plants and equipment.