The Provincial Government is taking action to help keep electricity rates more affordable for people across the province by significantly reducing the electricity rate increase planned for July 1, 2026.

The Honourable Tony Wakeham, Premier of Newfoundland and Labrador, has written Newfoundland and Labrador Hydro to advise them to apply a $45 million credit from the Rural Rate Alteration (RRA) account to offset the upcoming electricity rate increase relating to Newfoundland Power’s cost recovery. This move is intended to ease inflationary pressures at a time when many households and businesses are already stretched.

Without this action, electricity rates were projected to increase by seven per cent on July 1. By applying the RRA credit, the overall increase for island residential customers would be reduced to 2.25 per cent.

The RRA account was created to manage cost differences between rural and island electricity rates. In recent years, the account has built up to a larger-than-expected credit – about $45 million – due to delays in NL Hydro filing its General Rate Application during the implementation of Rate Mitigation.

Premier Wakeham has asked Newfoundland and Labrador Hydro to work with Newfoundland Power and the Public Utilities Board to ensure the credit is applied in a clear and transparent way for July 1, 2026. Government has also requested that work begin on a long-term approach for the treatment of the RRA balance on a go-forward basis.

Please click here for a copy of the letter.

Quotes
“Our government committed to take real steps to ease financial pressures and put more money back in the pockets of hardworking people.  Applying the RRA credit to offset the July 1, 2026, rate increase will significantly reduce the impact on customers and provide meaningful near-term relief for all of us.”
Honourable Tony Wakeham
Premier of Newfoundland and Labrador

“This decision reflects our commitment to protecting families, supporting rural communities and managing our electricity system in a way that is transparent, responsible and in the public interest.”
Honourable Lloyd Parrott
Minister of Energy and Mines

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