Jones says fight to lower domestic electrical rates successful!
April 26, 2007

Yvonne Jones, MHA for the District of Cartwright-L=Anse Au Clair, says that following clarification from Newfoundland and Labrador Hydro on a recently announced $1.6 million subsidy to diesel customers on the coast of Labrador, she is advised that there will be substantial savings on energy bills for consumers her district, a reduction that she had fought hard to achieve.  

The subsidy from the crown corporation was introduced last week as part of the Northern Strategic Plan for Labrador; however, lack of details on the investment prevented determining exactly where the benefits would be realized. 

AI have since held discussions with Newfoundland and Labrador Hydro and I am delighted to see that they intend to charge an integrated rate for domestic customers in all regions of Labrador,@says Jones. AThis is tremendous news for my constituents and one that I have lobbied long and hard on their behalf to come to fruition, including appearing before the Public Utilities Board on three different occasions.@ 

The Liberal MHA points out that for the past three years, rates in Labrador West have increased by 150 per cent to bring them in line with the Happy Valley-Goose Bay customers, who pay 4 cents per kilowatt hour on lifeline block consumption.  Government, through Newfoundland and Labrador Hydro, during this time frame collected more than $150 million in additional revenues from Labrador Power on the Upper Churchill alone and this year, Voisey=s Bay Nickle Company will contribute over $100 million in new royalties to the provincial treasury. 

ANewfoundland and Labrador Hydro is finally returning some of that money to Labrador by reducing the rates of diesel isolated communities from the 8.9 per cent per kilowatt hour to the equivalent rates of Happy Valley-Goose Bay.  This could mean up to an average annual saving of $500 on a household=s bill. This is a long overdue break for the people of coastal communities who have been paying high rates for electricity  far too long.@ 

Jones says despite the success of her fight to lower domestic electrical rates, she does not intend to rest until the full job is completed, pointing out that commercial businesses on the North and South coasts still pay far too much for electricity.  A I intend to keep the pressure on Hydro and the provincial government to have an Interconnected Labrador Rate for commercial users in Labrador as well. AWhy should businesses in Happy Valley-Goose Bay and Labrador West have the convenience and benefit of low electrical rates, while our businesses are being crippled by the high rate of consumption?@                             

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



© Liberal Party of NL