Qulliq Energy Corp. claims that the proposed tariff structure would be more “equitable”
Nunavut’s electric utility wants to charge the same rate to all customers, regardless of location
Qulliq Energy Corp., is seeking to change the way it bills customers for electricity from a community model to a territory-wide model, a move it says will be fairer to its customers.
Under the current structure, residents and businesses are charged different rates depending on the community they are in. A territory-based structure would see all customers of the same type charged the same rate, regardless of location, QEC said in a statement. declaration relating to its general tariff application on its website.
By requiring each community to pay different electricity rates, smaller communities that must pay higher rates are disadvantaged, QEC President and CEO Rick Hunt said in a statement to Nunatsiaq News.
The Nunavut utility proposed the change to its rate structure in an application to the Minister responsible for QEC. The company requested an increase in the overall electricity rate of 5.1%, an increase of 1.5 cents per kilowatt hour.
For residential customers using 700 kilowatt hours per month, this will increase monthly bills by $11.
This is the lowest raise requested by his organization since its inception in 2001, Hunt said.
A territory-wide application will also change the rates charged to business customers.
Since Iqaluit has the lowest commercial electricity rate in the territory, its commercial rates would increase under the new proposal by 2.5 cents per kilowatt hour, which would increase the monthly bill by approximately $52. for companies that use 2,000 kilowatt hours per month.
But the increase is meant to offset the significantly higher rates commercial customers pay in smaller communities, such as Whale Cove, Hunt said. Under the proposed new rate structure, commercial customers at Whale Cove would pay approximately $1,303 less per month for electricity, based on 2,000 kilowatt hours of consumption.
Currently, commercial non-government customers at Whale Cove pay 112.8 cents per kilowatt hour compared to 48.3 cents per kilowatt hour in Iqaluit.
“It is unreasonable to expect commercial customers in Whale Cove to pay more than double the cost of electricity than commercial customers in Iqaluit,” Hunt said.
In order to make the changes workable for residential and commercial customers, QEC is requesting a rate increase for government customers. This increase is not specified.
The average business customer in Nunavut pays an average electricity rate of 81.2 cents per kilowatt hour compared to an average of 21 cents per kilowatt hour in the rest of Canada.
The Nunavut utility encourages Nunavummiut to participate in the review of its rate application by providing feedback to the minister responsible for QEC. The comment period closes June 17. The proposed tariff change would be implemented on October 1.