Iqaluit (Mar 07/05) - Nunavummiut will see their power bills go up, but it's not the large increase many were expecting, and it likely won't solve the Qulliq Energy Corporation's financial woes.

The Government of Nunavut accepted the Utilities Rate Review Council's (URRC) recommendations

Residential customers whose consumption is less than 700 kwh will see an increase of 3.18 cents on their power bills. The current rate for subsidized electricity consumption for residents will increase from 15.22 cents to 18.4 cents. Commercial customers will see an increase of up to 16.5 per cent on their bills. In Iqaluit, residential customers who paid 31.5 cents per kwh, will now pay 36.8 cents per kwh. However, a rate rider has not been announced yet. The GN has 90 days to announce what the rate rider will be. That rider, which is applied to everyone's bill to cope with changes in diesel fuel prices, can make a real difference in what you pay. In 2004-2005 the GN decided not to add a fuel rider of 0.075 cents per kwh. This move was widely criticized by the public as a purely political move around election time. It ended up forcing the QEC into greater financial trouble.

on power, and most people in Nunavut will see their power bills go up about three cents per kilowatt/hour (kwh) starting April 1.

Iqaluit resident Keith Irving said he thinks the public really affected the outcome of the URRC decision, and the increase wasn't as big as everyone feared it would be.

"There were many people who came out. And some of them said, 'What does it matter? Everything's being done in the back rooms.' I think the URRC's report shows that the public's comments were taken seriously," said Irving.

This is the first rate change to Nunavut customers in eight years.

Bob Vardy, deputy minister of finance, admits the increase won't solve the Qulliq Energy Corporation's (QEC) money problems.

In fact, even with the increase QEC expects to post an operating loss of $4.1 million by March 2006.

"We can't get a financial miracle to cover all the mistakes the Qulliq Energy Corporation has incurred," Vardy told reporters last week.

Vardy said developing a power rate increase that would help the QEC dig out of debt without bankrupting everyone in Nunavut in the process is "a complex undertaking that will not be solved overnight."

But as far as the government and QEC are concerned they have "struck a balance" with the URRC, "between the needs of the corporation to move forward towards long term financial sustainability," and the needs of customers for stability, Vardy said.

The GN has requested an extra $22 million to deal with the financial requirements for QEC up to March 31.

Power subsidy

- In 2003 the Government of Nunavut pumped $14 million into Qulliq.

- In 2004-05 the government spent $22 million on Qulliq.

- The basic monthly charge of $18 per household will be fully subsidized through the Nunavut Electricity Subsidy Program.