The territorial government has confirmed it is looking at sending millions more dollars in GNWT cash to the NWT Power Corporation to lower proposed rate increases.
The power corporation is in the middle of asking regulator the Public Utilities Board for increases that would amount to a 25-percent year-on-year rate hike. (The actual increase would vary depending on where you are and what type of customer you are.)
Of that 25 percent, 7.1 percent was already approved in July and is a done deal. The remainder is what the Public Utilities Board is studying – and what the GNWT is considering subsidizing so the increase is less than 25 percent overall.
NTPC had already said the GNWT was looking at a subsidy.
In an emailed statement, the territory confirmed to Cabin Radio it was “exploring options to provide additional financial support, which includes a proposed $12-million annual subsidy over four years.”
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GNWT cash transfers to NTPC are nothing new. The territory recently said that without $45.2 million given to the power corporation over the past two years – to cover extra costs associated with low water levels and high diesel prices – the rate increase needed would be more like 45 percent.
The latest subsidy, if approved, would “lower the total average rate increase to 15 percent from the rates last reviewed by the Public Utilities Board in 2022-23,” read the statement, which was attributed to Caroline Wawzonek, the minister for finance, infrastructure and the NWT Power Corporation.
In other words, the 7.1-percent increase that was already applied would be followed by a proposal for a 7.9-percent increase if the subsidy is approved, replacing the current proposal for a larger increase. The Public Utilities Board would still be tasked with reviewing that.
“To clarify, NTPC is only suggesting an increase to the variable energy rate – the part of the bill that depends on how much electricity you use – while the fixed monthly charge will remain unchanged,” the GNWT’s statement continued.
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Again, the precise impact of the subsidy would depend on factors like where you are and who distributes your power.
“The key takeaway is this: with the GNWT’s proposed subsidy, a residential customer using 1,000 kWh in the winter would see their bill increase by about $33 per month, or 8.9 percent,” the GNWT stated.
The territory said it was “actively looking for more ways to help and will continue to monitor the situation closely.”
