Your power bill is still going up, but the final approved rate from Nova Scotia Power will be lower than they initially requested.
The Energy Board approved the company’s application for a rate hike, but they say the company needs to cut more spending to keep things affordable for customers, according to a news release.
They say they only approve a rate hike request if it is in the public interest.
“While many of the terms are appropriate, the board finds that some changes are required to ensure final rates are just, reasonable, and in the public interest,” they say.
All in all, your power bill increase will be slightly lower than the utility’s initial proposal of 3.8 per cent in 2026 and 4.1 per cent in 2027, the board says.
The board told the utility to make several changes, which include:
- reducing the proposed executive compensation in both 2026 and 2027
- further reducing the Operating, Maintenance, and General expenses in each of 2026 and 2027 by an additional $8 million on top of the $9 million in reductions they already outlined in the settlement agreement
- the denial of about $1 million proposed for a general rate application deferral account
- a $1.8-million reduction in fuel and purchased power costs
- a change to how NS Power splits distribution system costs among different customer groups based on their demand (it will shift related costs from residential, small general, and unmetered customers to other rate classes)
- the denial of a proposed fee for customers who have not agreed to the installation of an AMI smart meter for remote meter reading and billing purposes
The utility has two weeks to come up with the newly adjusted rates based on these changes. The Energy Board will then review the rate and when that process is done, they will issue an order confirming the exact amount of the rate hike and when it will take effect.
The board says they are very aware of affordability concerns in the province, but they say they do not have the power to “address specific social issues.”
“The Board is not permitted to refuse a utility from recovering legitimate costs just to make rates more affordable,” the board wrote in the release.
They also say they cannot make decisions based on the reliability of the utility and the public’s opinion of them. However, the board says they can impose regulatory measures if the system is “inadequate or unreliable,” and they say they are currently looking into performance standards, the utility’s 5-Year Reliability Plan, and the cyber
incident in separate, ongoing proceedings.
This comes after the recent cyber attack on the utility, where hundreds of thousands of current and former customers had their information stolen. On the same say as the board’s decision, the federal privacy commissioner also revealed new details about the incident, including how exactly their systems were compromised.
On top of that, during a weekend cold snap earlier this season, the utility asked people to try and conserve power because of high demand on the grid. That request drew overwhelming criticism across the province.
In response to the board’s decision Wednesday, the newly appointed CEO of Nova Scotia Power, Vivek Sood, said they are committed to improving reliability and delivery services.
“As we’ve seen this winter, continued investments in the electricity grid are critical, both in terms of the reliability of our system during storms and the supply of electricity during extreme cold snaps.”
Meanwhile, in a statement from Texas, Nova Scotia Premier Tim Houston called the board’s decision ‘out of touch.’
NDP leader Claudia Chender also issued a statement, saying the rate increase is difficult to swallow. She says the Houston government must move forward with a full review of Nova Scotia Power.
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