N.L. to cut home heating costs

NEWFOUNDLAND & LABRADOR - People across Newfoundland and Labrador will receive an eight per cent rebate on electricity and heating fuel, according to the provincial 2011 budget.

The program is expected to cost the provincial government about $38 million annually — a loss the government says it can afford, as it announced a surplus of $485 million for the past fiscal year and is forecasting a $59-million surplus for the coming year.

"Oil prices are high and it appears that these prices are going to be sustained at high prices," said Finance Minister Tom Marshall. "So we felt it was time to give back."

The new rebate program will begin on October 1 — 10 days before the next provincial election — but Marshall deflected criticism that the budget aims to buy votes.

"It is an election year but I don't see any difference between this budget and the budgets I've done in the past," said Marshall, who delivered his fourth budget.

The rebate will apply to all residents using fuel and/or electricity to heat their homes.

After the announcement NDP Leader Lorraine Michael celebrated the home-heating rebate announcement.

"To quote another politician 'We got it'," said Michael, referring to what Danny Williams said after negotiating the Atlantic Accord deal with former Canadian Prime Minister Paul Martin.

Michael who had called for the rebate said the announcement shows the difference one lone voice house of assembly can make.

The new rebate will be in addition to the existing the current home heating rebate program for low-income individuals and families.

According to the government's plan, the savings will appear on bills consumers receive from oil and electricity companies and those companies will then invoice the province for the rebated amount.

Government officials said details of how it will work with those companies have not been hammered out yet.

The rebate is equal to the eight per cent provincial portion of HST on residential electricity and heat.

Related News

electric vehicle

Why subsidies for electric cars are a bad idea for Canada

TORONTO - Bad ideas sometimes look better, and sell better, than good ones. Not always, or else Canada wouldn’t be the mostly well-run place that it is. But sometimes politicians embrace a less-than-best policy – because its attractive appearance may make it more likely to win the popularity contest, right now, even though it will fail in the long run.

The most seasoned political advisers know it. Pollsters too. Voters, in contrast, don’t know what they don’t know, which is why bad policy often triumphs. At first glance, the wrong sometimes looks like it must be right, while better and…

READ MORE

Updated Germany hydrogen strategy sees heavy reliance on imported fuel

READ MORE

us offshore wind

U.S. offshore wind power about to soar

READ MORE

totalenergies-to-acquire-german-renewables-developer-vsb

TotalEnergies to Acquire German Renewables Developer VSB for US$1.65 Billion

READ MORE

Quebec and other provinces heading toward electricity shortage: report

READ MORE