Natural Resources
Labrador and Aboriginal Affairs
June 29, 2007

Government Announces Details of Labrador Coastal Electricity Rebate

The Provincial Government today provided details of an energy rebate for residents of isolated diesel-serviced communities on the Labrador coast and the Labrador Straits.

The Provincial Government is investing $1.6 million annually to cover the cost of this rebate for approximately 2,600 customers of Newfoundland and Labrador Hydro. Hydro will provide the rebate to customers as a direct credit on regular monthly bills issued after July 1, 2007.

"The rebate ensures that these residents pay the same rate for electricity for basic needs as other residents of Labrador," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "It is intended to provide some rate assistance to people living in Labrador's isolated coastal communities reliant on diesel power generation."

The rebate applies to the Lifeline Block, an allotment of electricity sufficient to cover basic needs, such as lighting, cooking and water heating. The rebate brings the monthly basic customer charge and the rate charged for this power to these customers in line with the Labrador Interconnected System and the rates paid by those living in the Happy Valley-Goose Bay area. It was originally announced in the Northern Strategic Plan.

With the rebate, the effective customer service charge for these communities will be $7 per month, versus $15.59 previously. The effective rate for the Lifeline Block of electricity each month will also decrease from 8.9 cents per kilowatt hour to 3.2 cents.

Any kilowatt-hours over the Lifeline Block will still be billed at the current applicable rate. The Lifeline Block is not designed to cover home heating requirements. Residents in diesel-serviced communities primarily use other energy sources to heat their homes, such as wood or oil.

"Our government is committed to improving the lives of all Labradorians," said the Honourable John Hickey, Minister of Labrador Affairs. "The rebate is part of the Northern Strategic Plan, which will serve to further energize the social and economic well being of Labradorians and lay the foundation for a brighter future for the people in these communities."

The Lifeline Block varies through the year from 700 � 1,000 kilowatt-hours to reflect the seasonal basic need for electricity. The average monthly electricity rebate, depending on usage, will be $45 to $65 monthly.

For more information on the Labrador Coastal Electricity Rebate, please contact Hydro Customer Service at 1-888-737-1296.

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Media contacts:

Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241

tracybarron@gov.nl.ca
 
David Salter
Director of Communications
Labrador Affairs
709-729-3015, 691-3577

davidsalter@gov.nl.ca
 

2007 06 29                                         2:10 p.m.

 


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