Rate increases, colder temps behind N.B. Power bill spikes, review finds

CBC

25-04-2025

A spike in New Brunswick energy bills to start the winter was due to higher power costs and freezing temperatures, according to a third-party review.
N.B. Power CEO Lori Clark told reporters Friday that she understands the findings may be of little comfort to those who struggled to pay their bills this winter, but she hopes the results will provide some level of confidence in the embattled utility.
"Having the trust and confidence of New Brunswickers is important to the utility," Clark said. "It's one of the most important things for the utility.
"This report today should give customers confidence that our metering and billing systems are working properly, and that smart meters actually provide a tool for them to help manage their energy usage over time."
The assessment of N.B. Power bills by auditing service KPMG found that bills were about 25 per cent higher in December 2024 than the previous year. Of that increase, 13 per cent was based on a rate increase that took effect in April 2024 and 12 per cent was due to consumption.
KPMG staff told reporters during a technical briefing that the figures line up with frosty temperatures, which were 11 to 16 per cent colder than the prior December. According to the report, there was a "statistically significant correlation between weather temperatures and power consumption."
WATCH | Cold temperatures driving power costs:
Cold temps, higher rates behind steep climb in December power bills, review says
32 minutes ago
Duration 2:02
Billing periods were also an average of 1.24 days longer than the year before, and there were 68 per cent fewer outage hours than the same period the year prior. Billing cycles have fluctuated from 28 days to 31 days, but the utility says it plans to make them the same in future.
Clark said the utility wants to find ways to lessen the burden of recent rate hikes on customers and is launching several initiatives with that aim.
"We do know that the results of this will not make it any easier for some of those customers who are struggling to pay their bills to actually pay those bills," Clark said.
"We know in New Brunswick that we have some of the lowest rates in Canada, but because of the high dependence on electric heat that our customers have some of the largest bills. So there are certainly some actions that we can take to help customers manage their consumption."
Clark reiterated N.B. Power's commitment to applying "time of usage" metering once smart meters are installed across the province, likely next year.
"Time of usage" billing will allow customers to opt in to a differential rate structure, where they pay more for power during peak times but a lesser rate outside those periods.
466 accounts got closer look
To conduct its review KPMG analyzed 466 customer accounts, comparing December 2024 bills to December 2023 and November 2024.
Of those, 275 did not have their meter changed in the last year, 46 had a winter peak in the last five years within 10 per cent of the consumption recorded in December 2024, and 33 had similar consumption levels to their peers following the change in meter.
Another 92 customers had consumption levels 30 per cent or more higher than the previous year. KPMG recommended that N.B. Power contact those customers to see if there were other factors to help explain the sudden spike.
Overall, the review found that there were 67 million more kWh used in December 2024 than in December 2023. The pre-tax costs to residential customers were $20 million higher, with roughly half being due to higher rates and half due to higher consumption.