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Flick of the switch

Power corporation error leaves hamlet owing $16,000

Darrell Greer
Northern News Services

Rankin Inlet (Sep 18/02) - Rankin Inlet was the hardest hit among Kivalliq hamlets by a Nunavut Power Corp. billing error.

Hamlets were undercharged for peak-demand usage during the past year as a result of a new computer program's failure to calculate the demand properly.

Rankin received a bill for $16,000, part of the more than $200,000 hamlets across Nunavut are being charged for the billing error.

Private enterprises were also hit, with some stores in the region reportedly owing as much as $60,000 on last year's electrical bill.

Rankin senior administrative officer Ron Roach says the hamlet had no idea the bill was coming until it landed at the office.

"We don't, of course, have those funds contained in our regular budget, so we're going to have to dip into our surplus to pay that balance," says Roach.

"All together, counting what we owe from last year and this year's projected bill, we're going to get hit with a $32,000 touch."

Roach says although the Nunavut Power Corp. was very forthcoming in admitting the bill was its mistake, it was also made clear the arrears would have to be paid.

"There won't be any late payment charges and, as I understand it, there will be no interest tacked on, just the principal itself."

" But, we haven't received any written confirmation on anything yet."

Roach says affected hamlets are hoping the territorial government will come up with some form of financial assistance.

However, he says there is a better solution to the ongoing question of hamlet funding.

"I can't understand why the government doesn't sit down and look at the hamlet's financial review and decide to deal with the issue of funding hamlets, once and for all, on a fair and equitable basis."

Community government assistant deputy minister Shawn Maley says hamlets have already received the proper funding for the past and current fiscal years.

He says the Power Corp. will be flexible in terms of collecting the money, but not forgiving it.

"I can't see that stance changing," says Maley.

"The best-case scenario the hamlets are probably looking at is to be able to repay it in equal instalments between now and March 31, 2003."