Iqaluit (Dec 06/04) - Already hurting from surprise power bills, word last week that a proposed rate increase could be even higher, some business owners say they're lost faith in Qulliq Energy Corp.

Businesses around the territory were told recently they will have to pay thousands of dollars more because energy costs were miscalculated by Qulliq.

Then, early last week, word that the corporation's power rate application contained mistakes that weren't made public stirred debate in the Legislative Assembly and frustration at Utility Rate Review Council hearings in Iqaluit. The mistake means proposed power rates will be six per cent higher than what the public was originally told.

In Cambridge Bay, Vicki Aitok and her husband just opened a small business selling new and used clothing and religious supplies.

She also manages Nunavut Housing Corporation's 205 public housing units in the Kitikmeot community.

The housing corporation received a bill asking for $8,000 more because Qulliq had miscalculated energy costs for the past year and a half.

"There are competency issues and performance issues with the corporation at all levels," said Vicki Aitok.

Kerry Horne, owner of the Coppermine Inn in Kugluktuk, said he is refusing to pay a bill for an extra $13,000.

"Their excuse to me was the meter was read wrong," he said. "It would appear to me the power corporation is self-destructing."

Iqaluit entrepreneur Kenn Harper says it's time to fire Qulliq's board of directors.

"The application is so flawed; this is such amateurish work. I have faith in the abilities of the URRC, and ... I don't see how they can do anything but write a scathing report.

"This power corporation is in crisis," Harper said.

Energy Minister Ed Picco defended the embattled government corporation, saying he still has faith it can do the job.

"There are going to be mistakes," Picco said. "I make mistakes, you make mistakes."

In the Legislative Assembly last Wednesday, Picco said he was only informed of the rate application error that morning.

"If some of the information is wrong, that's why the Utility Rates Review Council is out there: to provide that check and balance."

Picco promised to make sure the public, hamlets and intervenors are aware of the application mistake but said he wouldn't stop the hearings.

"If I held back and said go back and rework everything, I wouldn't meet the April 1, 2005 deadline. Six months from now it'll be 1998 to 2005, seven years on the same rate. I don't know what the losses would be. Everyone knows the rate has to increase and right now this proposal is going forward."

Qulliq officials did not return calls by deadline.