The Canadian Federation of Independent Businesses says it will apply to be an intervener when the Energy and Utilities Board begins the hearings for the NB Power rate increase application.
Louis-Philippe Gauthier, vice-president for the Atlantic region, said businesses have been dealing with labour shortages, inflation, supply chain issues and the COVID-19 pandemic and many have not been able to reach pre-pandemic revenue levels.
“It’s like receiving a brick through the window at this point,” he said. “With all the increased cost that businesses are living through over the last year, this is not going to be helpful.”
On Wednesday, NB Power submitted an application to the EUB for a rate increase of 8.9 per cent across all classes, meaning that will impact residential and commercial customers the same.
It’s the largest request for an increase since 2007.
He said the next step is to look at the rate application and gather information on how the power rates impact businesses’ bottom line in addition to the other challenges they are facing. The CFIB will bring that to the EUB when hearings start.
On the political side, though, the debate continues about how best to handle the rate hike.
Premier Blaine Higgs said low rate increases in the past, previous denials of requests for higher rates, and significant debt have all led NB Power to the situation it is facing now.
He said the government won’t interfere with the application.
“We’re going to let the process unfold,” he told reporters Thursday. “Identify all the issues that the utility is facing and we will find a way to mitigate to help homeowners and those that are getting hit hard with energy increases to mitigate those impacts.”
The Higgs government has provided the provincial utility with a mandate to reduce its $5 billion in debt, which it said this increase won’t touch, describing it as a break-even budget for 2023.
Liberal Leader Susan Holt said there is a balance to be found on this rate increase.
“There has to be a balance between trying to put the utility on a path for sustainability but also recognizing this increase is too large for people to handle,” she said. “So, I think it does need two different approaches.”
Green Party Leader David Coon said the government should remain independent of the EUB process, and allow that governing body to determine whether the rate increase is justified, but needs to help in other ways.
He said it should increase the budget for energy efficiency programs and provide direct support to low-income households in the winter months to help them stay on top of the heating bills.
“That’s where the government needs to be engaged, and ensure there is sufficient budget to do both those things,” he said. “They’re bringing in over $200 million a year in carbon tax revenue so they’ve got the money to work with that.”
The rate increases are expected to remain for one year, if accepted, with NB Power saying it is too difficult to predict what the rate would be like for 2024.
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