The NB Power head office in Fredericton. Image: Submitted/NB Power

NB Power is seeking a substantial rate hike of 8.9 percent for all customers which is bound to raise some eyebrows.

For the average customer, it would mean an additional $16 per month or $200 per year.

NB Power acting CEO Lori Clark recognizes the significant impact this hike will have on low-income households.

She points to a recently announced energy savings program for households with incomes under $70,000 which would make a switch from baseboard heating to heat pumps.

“If a customer owns their home and they apply to the program and have those options done at their home, their savings could be as high as $42 a month or $500 a year,” she notes.

In its application to the Energy and Utilities Board, NB Power states numerous reasons for the sizeable increase such as unprecedented hikes in fuel and purchased power costs, extraordinary inflationary pressures, supply chain issues and steep commodity prices.

The Crown corporation says its costs have gone up in areas such as energy efficiency, digital technology, operations and maintenance, labour and benefits and the Mactaquac Dam Life Achievement Project.

If granted, any rate hike would take effect on April 1, 2023.

NB Power was granted a 2.0 percent rate hike last spring.