Electricity Rates
2010-02-02 |
According to the media yesterday, Maritime Electric filed a rate application which basically states that our electricity rates will not go up over the next two years.
Our electricity rates have gone up substantially over the past 5-6 years and are now at least 50% greater than the Canadian average. This puts our provincial economy at a competitive disadvantage to anywhere else in Canada.
When the world price for oil peaked about 18 months ago, this was used as an excuse to jam up rates. The problem as I see it is that there is no mechanism to bring rates down.
If oil dropped to $10.00 a barrel, there would be absolutely no reduction in electricity rates.
This whole situation is unfortunate for the province, the businesses that operate in the province and everyone that lives here.
