PlanetNL26: Exposing Hydro’s Rural Deficit Account - Part 1
Very few Newfoundland Power (NP) customers know
they will overpay their true cost of electricity this year by 12%. Labrador Interconnected System (LIS) customers
will also overpay by 16%. Government has
legislated the utilities to over-collect from these two sets of customers to
subsidize high-cost rural and isolated regions. Hydro calls it the Rural Deficit account.
This
hefty involuntary subsidy grows annually as Government-imposed rate-setting
policies for the rural and isolated regions widen the cost gaps. NP customers especially, imminently
threatened by severe rate increases arising from Muskrat Falls, are being
counted upon by Government to pay a hefty price for Government policy goals. Government needs to be brought to task to overhaul
the mechanics of the Rural Deficit and the rate-setting policies in rural and
isolated areas before a penny of Muskrat costs is levied upon ratepayers.
