Liberal Party of Newfoundland and Labrador
 
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Office of the Official Opposition

   

 

Thistle urges proactive response as electricity rates continue to rise
August 4, 2006

Liberal Opposition Critic for Finance and MHA for the District of Grand Falls-Buchans, Anna Thistle, says that the challenge of heating homes in the coming months urgently necessitates action by government to protect electricity consumers, including the option of introducing a rebate program.

Earlier this week, Newfoundland and Labrador Hydro filed an application for a rate increase with the Public Utilities Board, citing rising costs of generating electricity. This would be the fourth such increase since the Conservatives assumed government in 2003 and amounts to an astounding increase in the vicinity of 25 percent during the past three years.

"The impact on electricity consumers in this province will be tremendous and government can no longer continue to absolve itself of its moral duty to step in and protect those most vulnerable to these increases, including seniors and low income earners, " states Thistle. "Government cannot justify a double standard, whereby they assist low income earners who heat their home with oil and continue to ignore those who use electricity. It is certainly not fair, nor is it acceptable."

The Liberal MHA says that while an average 4.6 per cent increase for most island consumers is expected, those in Labrador will be the hardest hit as an average of 8.5 per cent increase has been requested by Hydro. "This is absolutely atrocious as this means that Labrador residents will amongst the highest payers of electricity in the country. Ironically, this is likely to be approved by a government which continues to laud itself for its commitment to Labrador.

"Government is reaping increased huge profits from offshore oil royalties and will bank additional money from the HST portion of these increased electricity rates. There can no longer be any excuses why a rebate program or other options cannot be implemented to offset the sky-high costs of heating a home. We all know that low income owners and seniors dig into an already stretched food budget to stay warm. This will be particularly problematic come the colder winter months. Government can and should be proactive on this issue if it is at all serious about poverty reduction."

Media Contact:
Kim Ploughman
Caucus Communications
Office of the Official Opposition
709-729-6427