NL Consumer Advocate says 18% electricity rate hike 'unacceptable'


Newfoundland Consumer Advocate

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Newfoundland and Labrador electricity rate hike examines a proposed 18.6% increase under the PUB's Rate Stabilization Plan, driven by oil prices at Holyrood, with Consumer Advocate concerns over rate shock and use of RSP balances.

 

Key Points

A proposed 18.6% July 2017 increase under the RSP, driven by oil prices, now under PUB review for potential mitigation.

✅ PUB flags potential rate shock from proposed adjustment

✅ RSP balances cited to offset increases without depleting fund

✅ Oil-fired Holyrood volatility drives fuel cost uncertainty

 

How much of a rate hike is reasonable for users of electricity in Newfoundland and Labrador?

That's a question before the Public Utilities Board (PUB) as it examines an application by Newfoundland and Labrador Hydro, which could see consumers pay up to 18.6 per cent more as of July 1, reflecting regional pressures seen in Nova Scotia, where regulators approved a 14% rate hike earlier this year.

"The estimated rate increase for July 2017 is such a significant increase that it may be argued that it would cause rate shock," said the PUB, asking the company to revise its application.

NL Hydro said the price adjustment is part of what happens every year through the Rate Stabilization Plan (RSP), which is used to offset the ups and downs of oil prices.

"The cost of fuel is volatile and as long as we rely on oil-fired generation at Holyrood, customers will continue to be impacted by this electricity price uncertainty," said the company in a statement to CBC News.

It noted that customers received a break from RSP adjustments in 2015 and 2016, even as costs from the Muskrat Falls project begin to be reflected.

The PUB noted that under the rate stabilization plan, prices have gone up or down by about 10 per cent in the past.

The regulatory board said the impact of the latest request would be a 27.6 per cent hike to Newfoundland Power, with "an estimated average end customer impact of 18.6 per cent."

Hydro's estimates are based on an average price for oil of $81.40 per barrel from July 2017 to June 2018, according to the PUB.

 

'Unacceptable' burden: Consumer Advocate

"To burden ratepayers with an 18 per cent rate increase is unacceptable," said Consumer Advocate Dennis Browne, echoing pushback in Nova Scotia, where the premier urged regulators to reject a 14% hike at the time.

Browne is arguing that there is money in the RSP to reduce the proposed increase, including the possibility of a lump-sum bill credit for customers.

"These ratepayer balances — which, according to NL Power, totals $77.4 million — are not the property of Hydro," he wrote in a letter to the PUB.

"No utility has the right to squirrel away ratepayers' money to be used by that utility for some future purpose. The Board has jurisdiction over those balances," Browne said.

Browne also wants the RSP overhauled so that it can be applied to price fluctuations every quarter, as opposed to annually.

Hydro has expressed concern that depleting the rate stabilization fund would lead to other, more significant, rate increases in the future.

It said several alternatives to mitigate high rates have been provided to the PUB, which has final say, similar to how Manitoba Hydro scaled back a planned increase in the next year.

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Starved of electricity, Lebanon picks Dubai's ENOC to swap Iraqi fuel

Lebanon-ENOC Fuel Swap secures Iraqi high sulphur fuel oil, Grade B fuel oil, and gasoil via tender, easing electricity generation shortfalls, diesel shortages, and grid outages amid Lebanon's energy crisis and power sector emergency.

 

Key Points

A tender-based exchange trading Iraqi HSFO for cleaner fuel oil and gasoil to stabilize Lebanon's electricity generation.

✅ Swaps 84,000t Iraqi HSFO for 30,000t Grade B fuel oil and 33,000t gasoil

✅ Supports state electricity generation during acute power shortages

✅ Tender won by ENOC under Lebanon-Iraq goods-for-fuel deal

 

Lebanon's energy ministry said it had picked Dubai's ENOC in a tender to swap 84,000 tonnes of Iraqi high sulphur fuel oil, as LNG export authorizations expand globally, with 30,000 tonnes of Grade B fuel oil and 33,000 tonnes of gasoil.

ENOC won the tender, part of a deal between the two countries that allows the cash-strapped Lebanese government, even as electricity tensions persist, to pay for 1 million tonnes of Iraqi heavy fuel oil a year in goods and services.

As Lebanon suffers what the World Bank has described as one of the deepest depressions of modern history, shortages of fuel this month have meant state-powered electricity, alongside ongoing electricity sector reform, has been available for barely a few hours a day if at all.

Residents turning to private generators for their power supply face diesel shortages, even as other countries roll out measures to secure electricity supplies to mitigate risks.

The swap tenders are essential as Iraqi fuel is unsuitable for Lebanese electricity generation, and regional projects like the Jordan-Saudi electricity linkage underscore broader grid strategies.

Lebanese caretaker Energy Minister Raymond Ghajar said in July the fuel from the Iraqi deal would be used for electricity generation by the state provider, even as France advances a new electricity pricing scheme in Europe, and was enough for around four months.

ENOC is set to receive the Iraq fuel between Sept. 3-5 and will deliver it to Lebanon two weeks after, the energy ministry said, following a recent deal on electricity prices abroad that could influence markets.

 

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Beating Covid Is All About Electricity

Hospital Electricity Reliability underpins ICU operations, ventilators, medical devices, and diagnostics, reducing power outages risks via grid power and backup generators, while energy poverty and blackouts magnify COVID-19 mortality in vulnerable regions.

 

Key Points

Hospital electricity reliability is steady power that keeps ICU care, ventilators and medical devices operating.

✅ ICU loads: ventilators, monitors, infusion pumps, diagnostics

✅ Grid power plus backup generators minimize outage risk

✅ Energy poverty increases COVID-19 mortality and infection

 

Robert Bryce, Contributor

During her three-year career as a registered nurse, my friend, C., has cared for tuberculosis patients as well as ones with severe respiratory problems. She’s now caring for COVID-19 patients at a hospital in Ventura County, California, where debates about keeping the lights on continue amid the state’s energy transition. Is she scared about catching the virus? “No,” she replied during a phone call on Thursday. “I’m pretty unflappable.”

What would scare her? She quickly replied, “a power outage,” a threat that grows during summer blackouts when heat waves drive demand. About a year ago, while working in Oregon, the hospital she was working in lost power for about 45 minutes. “It was terrifying,” she said. 

C., who wasn’t authorized by her hospital to talk to the media, and thus asked me to only use the initial of her first name, said that COVID-19 patients are particularly reliant on electrical devices. She quickly ticked off the machines: “The bed, the IV machine, vital signs monitor, heart monitor, the sequential compression devices...” COVID-19 patients are hooked up to a minimum of five electrical devices, she said, and if the virus-stricken patient needs high-pressure oxygen or a ventilator, the number of electrical devices could be two or three times that number. “You name it, it plugs in,” she said.  

Today In: Energy

The virus has infected some 2.2 million people around the world and killed more than 150,000,including more than 32,000 people here in the U.S. While those numbers are frightening, it is apparent that the toll would be far higher without adequate supplies of reliable electricity. Modern healthcare systems depend on electricity. Hospitals are particularly big consumers. Power demand in hospitals is about 36 watts per square meter, which is about six times higher than the electricity load in a typical American home, and utilities are turning to AI to adapt to electricity demands during surges. 

Beating the coronavirus is all about electricity. Indeed, nearly every aspect of coronavirus detection, testing, and treatment requires juice. Second, it appears that the virus is more deadly in places where electricity is scarce or unreliable. Finally, if there are power outages in virus hotspots or hospitals, a real risk in a grid with more blackouts than other developed countries, the damage will be even more severe. 

As my nurse friend in Ventura County made clear, her ability to provide high-quality care for patients is wholly dependent on reliable electricity. The thermometers used to check for fever are powered by electricity. The monitors she uses to keep track of her patients, as well as her Vocera, the walkie-talkie that she uses to communicate with her colleagues, runs on batteries. Testing for the virus requires electricity. One virus-testing machine, Abbott Labs’ m2000, is a 655-pound appliance that, according to its specification sheet, runs on either 120 or 240 volts of electricity. The operating manual for a ventilator made by Hamilton Medical is chock full of instructions relating to electricity, including how to manage the machine’s batteries and alarms. 

While it may be too soon to make a direct connection between lack of electricity and the lethality of the coronavirus, the early signs from the Navajo reservation indicate that energy poverty amplifies the danger. The sprawling reservation has about 175,000 residents, but it has a higher death toll from the virus than 13 states. About 10 percent of Navajos do not have electricity in their homes and more than 30 percent lack indoor plumbing. 

The death rate from the virus on the reservation now stands at 3.4 percent, which is nearly twice the global average. In the middle of last week, the entire population of Native American tribes in the U.S. accounted for about 1,100 confirmed cases of the virus and about 44 deaths. Navajos accounted for the majority of those, with 830 confirmed cases of coronavirus and 28 deaths. 

On Saturday night, the Navajo Times reported a major increase, with 1,197 positive cases of COVID-19 on the reservation and 44 deaths. Other factors may contribute to the high infection and mortality rates on the reservation, including  high rates of diabetes, obesity, and crowded residential living situations. That said, electricity and water are essential to good hygiene and health authorities say that frequent hand washing helps cut the risk of contracting the virus. 

The devastation happening on Navajoland provides a window into what may happen in crowded, electricity-poor countries like India, Pakistan, and Bangladesh. It also shows what could happen if a tornado or hurricane were to wipe out the electric grid in virus hotspots like New Orleans, as extreme weather increasingly afflicts the grid nationwide. Sure, most American hospitals have backup generators to help assure reliable power. But those generators can fail. Further, they usually burn diesel fuel which needs to be replenished every few days. 

The essential point here is that our hospitals and critical health care machines aren’t running on solar panels and batteries. Instead, they are running on grid power that’s being provided by reliable sources — coal, natural gas, hydro, and nuclear power — which together produce about 89 percent of the electricity consumed in this country, even as Russian hacking of utilities highlights cyber risks. The pandemic — which is inflicting trillions of dollars of damage on our economy and tens of thousands of deaths — underscores the criticality of abundant and reliable electricity to our society and the tremendous damage that would occur if our health care infrastructure were to be hit by extended blackouts during the fight to stop COVID-19.

In a follow-up interview on Saturday with my friend, C., she told me that while caring for patients, she and her colleagues “are entirely dependent on electricity. We take it for granted. It’s a hidden assumption in our work,” a reminder echoed by a grid report card that warns of dangerous vulnerabilities. She quickly added she and her fellow nurses “aren’t trained or equipped to deal with circumstances that would come with shoddy power. If we lost power completely, people will die.”

 

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Ireland announces package of measures to secure electricity supplies

Ireland electricity support measures include PSO levy rebates, RESS 2 renewables, CRU-directed EirGrid backup capacity, and grid investment for the Celtic Interconnector, cutting bills, boosting security of supply, and reducing reliance on imported fossil fuels.

 

Key Points

Government steps to cut bills and secure supply via PSO rebates, RESS 2 renewables, backup power, and grid upgrades.

✅ PSO levy rebates lower domestic electricity bills.

✅ RESS 2 adds wind, solar, and hydro to the grid.

✅ EirGrid to procure temporary backup capacity for winter peaks.

 

Ireland's Cabinet has approved a package of measures to help mitigate the rising cost of rising electricity bills, as Irish provider price increases continue to pressure consumers, and to ensure secure supplies to electricity for households and business across Ireland over the coming years.

The package of measures includes changes to the Public Service Obligation (PSO) levy (beyond those announced earlier in the year), which align with emerging EU plans for more fixed-price electricity contracts to improve price stability. The changes will result in rebates, and thus savings, for domestic electricity bills over the course of the next PSO year beginning in October. This further reduction in the PSO levy occurs because of a fall in the relative cost of renewable energy, compared to fossil fuel generation.

The Government has also approved the final results of the second onshore Renewable Electricity Support Scheme (RESS 2) auction, echoing how Ontario's electricity auctions have aimed to lower costs for consumers. This will bring significantly more indigenous wind, solar and hydro-electric energy onto the National Grid. This, in turn, will reduce our reliance on increasingly expensive imported fossil fuels, as the UK explores ending the gas-electricity price link to curb bills.

The package also includes Government approval for the provision of funding for back-up generation capacity, to address risks to security of electricity supply over the coming winters, similar to the UK's forthcoming energy security law approach in this area. The Commission for the Regulation of Utilities (CRU), which has statutory responsibility for security of supply, has directed EirGrid to procure additional temporary emergency generation capacity (for the winters of 2023/2024 to 2025/2026). This will ultimately provide flexible and temporary back-up capacity, to safeguard secure supplies of electricity for households and businesses as we deploy longer-term generation capacity.

Today’s measures also see an increased borrowing limit (€3 billion) for EirGrid – to strengthen our National Grid as part of 'Shaping Our Electricity Future' and to deliver the Celtic (Ireland-France) Interconnector, amid wider European moves to revamp the electricity market that could enhance cross-border resilience. An increased borrowing limit (€650 million) for Bord na Móna will drive greater deployment of indigenous renewable energy across the Midlands and beyond – as part of its 'Brown to Green' strategy, while measures like the UK's household energy price cap illustrate the scale of consumer support elsewhere.

 

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A resilient Germany is weathering the energy crunch

German Energy Price Brakes harness price signals in a market-based policy, cutting gas consumption, preserving industrial output, and supporting CO2 reduction, showcasing Germany's resilience and adaptation while protecting households and businesses across Europe.

 

Key Points

Fixed-amount subsidies preserving price signals to curb gas use, shield consumers, and sustain industrial output.

✅ Maintains incentives via market-based price signals

✅ Cuts gas consumption without distorting EU markets

✅ Protects households and industry while curbing CO2

 

German industry and society are once again proving much more resilient and adaptable than certain people feared. Horror scenarios of a dangerous energy rationing or a massive slump in our economy have often been bandied about. But we are nowhere near that. With a challenging year just behind us, this is good news — not only for Germany, but also for Europe, where France-Germany energy cooperation has strengthened solidarity.

Companies and households reacted swiftly to the sharp increases in energy prices, in line with momentum in the global energy transition seen across markets. They installed more efficient heating or production facilities, switched to alternatives and imported intermediate products. The results are encouraging: German households and businesses have reduced gas consumption significantly, despite recent cold weather. From the start of the war in Ukraine to mid-December industrial gas consumption in Germany was (temperature-adjusted) around 20 per cent lower than the average level for the preceding three years. Even if some firms have cut back production, especially in energy-intensive sectors, industrial output as a whole has only fallen by about 1 per cent since the start of 2022. Added to this, in a survey released by the Ifo institute in November, over a third of German companies saw the potential to reduce gas consumption further without endangering output.

Instead of imposing excessive laws and regulations, we have relied on price signals and the prudence of market participants to create the right incentives and reduce gas consumption, as falling costs like record-low solar power prices continue to reinforce those signals across sectors.

We will follow this approach in coming months, when energy savings will remain important, even as the EU electricity outlook anticipates sharply higher demand by 2050. Our latest relief measures will not distort price signals. To this end, the Bundestag approved gas and electricity price brakes in its final session in 2022. They are designed to function without any intervention in markets or prices. This system will pay out a fixed amount relative to previous years’ consumption and the current difference to a reference price — regardless of current consumption.

Energy price brakes are the main component of Germany’s “protective shield”, which makes up to €200bn available for measures in 2022 to 2024. Seen in relation to the German economy’s size, its past heavy reliance on Russian energy imports and the fact that the measures will expire in 2024, these are balanced and expedient mechanisms. In contrast to instruments used in other countries, our new arrangements will not affect the price formation process driven by supply and demand, or on incentives to save gas. Companies and households will continue to save the full market price when they reduce consumption by a unit of gas or electricity. In this way, the price brakes also avoid the creation of additional demand for gas at the expense of consumers in other European countries, even as Europe’s Big Oil turning electric signals broader structural shifts in energy markets. No one need fear that competition will be distorted or that gas will be bought up. Indeed, a recent IMF working paper on cushioning the impact of high energy prices on households explicitly praises the German energy price brakes.

Current developments confirm the effectiveness of a market-based approach — and show that we should also rely on price signals when it comes to reducing CO₂ emissions, as suggested by IEA CO2 trends in recent years. Last year, households and companies had only a few weeks to adapt, yet we have already seen a strong response. The effect of CO₂ prices can be even stronger, as adaptation is possible over a much longer time and they additionally affect expectations and long-term decisions. Regulatory interventions and subsidy schemes, even if well targeted, cannot compete with market co-ordination and incentives that support individual decision-making and promote innovation.

Europe and Germany can weather this crisis without a collapse in industrial production. We also have an opportunity to deal efficiently with the move to climate neutrality, aligned with Germany’s hydrogen strategy for imported low-carbon fuels. In both cases, we should have confidence in price signals as well as in the power of people and business to innovate and adapt.

 

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First Reactor Installed at the UK’s Latest Nuclear Power Station

Hinkley Point C Reactor Installation signals UK energy security, nuclear power expansion, and low-carbon baseload, featuring EPR technology in Somerset to cut emissions, support net-zero goals, and deliver reliable electricity for homes and businesses.

 

Key Points

First EPR unit fitted at Hinkley Point C, boosting low-carbon baseload, grid reliability, and UK energy security.

✅ Generates 3.2 GW across two EPRs for 7% of UK electricity.

✅ Provides low-carbon baseload to complement wind and solar.

✅ Creates jobs and strengthens supply chains during construction.

 

The United Kingdom has made a significant stride toward securing its energy future with the installation of the first reactor at its newest nuclear power station. This development marks an important milestone in the nation’s efforts to combat climate change, reduce carbon emissions, and ensure a stable and sustainable energy supply. As the world moves towards greener alternatives to fossil fuels, nuclear power remains a key part of the UK's green industrial revolution and low-carbon energy strategy.

The new power station, located at Hinkley Point C in Somerset, is set to be one of the most advanced nuclear facilities in the country. The installation of its reactor represents a crucial step in the construction of the plant, with earlier milestones like the reactor roof lifted into place underscoring steady progress, which is expected to provide reliable, low-carbon electricity for millions of homes and businesses across the UK. The completion of the first reactor is seen as a pivotal moment in the journey to bring the station online, with the second reactor expected to follow shortly after.

A Historic Milestone

Hinkley Point C will be the UK’s first nuclear power station built in over two decades. The plant, once fully operational, will play a key role in the country's energy transition. The reactors at Hinkley Point C are designed to be state-of-the-art, using advanced technology that is both safer and more efficient than older nuclear reactors. Each of the two reactors will have the capacity to generate 1.6 gigawatts of electricity, enough to power approximately six million homes. Together, they will contribute about 7% of the UK’s electricity needs, providing a steady, reliable source of energy even during periods of high demand.

The installation of the first reactor at Hinkley Point C is not just a technical achievement; it is also symbolic of the UK’s commitment to energy security and its goal to achieve net-zero carbon emissions by 2050, a target that industry leaders say multiple new stations will be needed to meet effectively. Nuclear power is a crucial part of this equation, as it provides a stable, baseload source of energy that does not rely on weather conditions, unlike wind or solar power.

Boosting the UK’s Energy Capacity

The addition of Hinkley Point C to the UK’s energy infrastructure is expected to significantly boost the country’s energy capacity and reduce its reliance on fossil fuels. The UK government has been focused on increasing the share of renewable energy in its mix, and nuclear power is seen as an essential complement to intermittent renewable sources, especially as wind and solar have surpassed nuclear in generation at times. Nuclear energy is considered a low-carbon, reliable energy source that can fill the gaps when renewable generation is insufficient, such as on cloudy or calm days when solar and wind energy output may be low.

With the aging of the UK’s existing nuclear fleet and the gradual phase-out of coal-fired power plants, Hinkley Point C will help ensure that the country does not face an energy shortage as it transitions to cleaner energy sources. The plant will help to bridge the gap between the current energy infrastructure and the future, enabling the UK to phase out coal while maintaining a steady, low-carbon energy supply.

Safety and Technological Innovation

The reactors at Hinkley Point C are being constructed using the latest in nuclear technology. They are based on the European Pressurized Reactor (EPR) design, which is known for its enhanced safety features and efficiency, and has been deployed in projects within China's nuclear program as well, making it a proven platform. These reactors are designed to withstand extreme conditions, including earthquakes and flooding, making them highly resilient. Additionally, the EPR technology ensures that the reactors have a low environmental impact, producing minimal waste and offering the potential for increased sustainability compared to older reactor designs.

One of the key innovations in the Hinkley Point C reactors is their advanced cooling system, which is designed to be more efficient and environmentally friendly than previous generations. This system ensures that the reactors operate at optimal temperatures while minimizing the environmental footprint of the plant.

Economic and Job Creation Benefits

The construction of Hinkley Point C has already provided a significant boost to the local economy. Thousands of jobs have been created, not only in the construction phase but also in the ongoing operation and maintenance of the facility. The plant is expected to create more than 25,000 jobs during its construction and around 900 permanent jobs once it is operational.

The project is also expected to have a positive impact on the wider UK economy. As a major infrastructure project, Hinkley Point C will provide long-term economic benefits, including boosting supply chains and providing opportunities for local businesses.

Challenges and the Road Ahead

Despite the progress, the construction of Hinkley Point C has not been without its challenges. The project has faced delays and cost overruns, with setbacks at Hinkley Point C documented by industry observers, and the total estimated cost now standing at around £22 billion. However, the successful installation of the first reactor is a step toward overcoming these hurdles and completing the project on schedule.

Looking ahead, Hinkley Point C’s successful operation could pave the way for future nuclear developments in the UK, including next-gen nuclear designs that aim to be smaller, cheaper, and safer. As the world grapples with the pressing need to reduce greenhouse gas emissions, nuclear energy may play an even more critical role in ensuring a clean, reliable energy future.

The installation of the first reactor at Hinkley Point C marks a crucial moment in the UK’s energy journey. As the country seeks to meet its carbon reduction targets and bolster its energy security, the new nuclear power station will be a cornerstone of its efforts. With its advanced technology, safety features, and potential to provide low-carbon energy for decades to come, Hinkley Point C offers a glimpse into the future of energy production in the UK and beyond.

 

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Federal net-zero electricity regulations will permit some natural gas power generation

Canada Clean Electricity Regulations allow flexible, technology-neutral pathways to a 2035 net-zero grid, permitting limited natural gas with carbon capture, strict emissions standards, and exemptions for emergencies and peak demand across provinces and territories.

 

Key Points

Federal draft rules for a 2035 net-zero grid, allowing limited gas with CCS under strict performance and compliance standards.

✅ Performance cap: 30 tCO2 per GWh annually for gas plants

✅ CCS must sequester 95% of emissions to comply

✅ Emergency and peak demand exemptions permitted

 

After facing pushback from Alberta and Saskatchewan, and amid looming power challenges nationwide, Canada's draft net-zero electricity regulations — released today — will permit some natural gas power generation. 

Environment Minister Steven Guilbeault released Ottawa's proposed Clean Electricity Regulations on Thursday.

Provinces and territories will have a minimum 75-day window to comment on the draft regulations. The final rules are intended to pave the way to a net-zero power grid in Canada, aligning with 2035 clean electricity goals established nationally. 

Calling the regulations "technology neutral," Guilbeault said the federal government believes there's enough flexibility to accommodate the different energy needs of Canada's diverse provinces and territories, including how Ontario is embracing clean power in its planning. 

"What we're talking about is not a fossil fuel-free grid by 2035; it's a net zero grid by 2035," Guilbeault said. 

"We understand there will be some fossil fuels remaining … but we're working to minimize those, and the fossil fuels that will be used in 2035 will have to comply with rigorous environmental and emission standards," he added. 

Some analysts argue that scrapping coal-fired electricity can be costly and ineffective, underscoring the trade-offs in transition planning.

While non-emitting sources of electricity — hydroelectricity, wind and solar and nuclear — should not have any issues complying with the regulations, natural gas plants will have to meet specific criteria.

Those operations, the government said, will need to emit the equivalent of 30 tonnes of carbon dioxide per gigawatt hour or less annually to help balance demand and emissions across the grid.

Federal officials said existing natural gas power plants could comply with that performance standard with the help of carbon capture and storage systems, which would be required to sequester 95 per cent of their emissions.

"In other words, it's achievable, and it is achievable by existing technology," said a government official speaking to reporters Thursday on background and not for attribution.

The regulations will also allow a certain level of natural gas power production without the need to capture emissions. Capturing emissions will be exempted during emergencies and peak periods when renewables cannot keep up with demand. 

Some newer plants might not have to comply with the rules until the 2040s, because the regulations apply to plants 20 years after they are commissioned, which dovetails with net-zero by 2050 commitments from electricity associations. 

The two-decade grace period does not apply to plants that open after the regulations are expected to be finalized in 2025.

 

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