The GNWT has announced that they will be introducing a $48 million dollar subsidy to help lower the cost of power in the North.
The subsidy will be carried out in $12 million dollar increments to the Northwest Territories Power Corporation over the next four years. It is designed in direct response to the rising costs of power, and will be taking aim at the rate increases proposed by the NTPC’s General Rate Application. It is believed that this will lower the proposed rate from 24.8 percent to 15 percent.
The causes of the rising costs of electricity in the North are traced back to inflation, energy price volatility, and climate change.
The NTPC’s General Rate Application is currently being reviewed by the NWT Public Utilities Board, who are inspecting all facets to make sure that the rate increases are fair and reasonable.
In a statement, Caroline Wawzonek, the Minister of Finance, said that “the GNWT recognizes the significant impacts escalating power costs are having on residents, and this subsidy will help reduce those costs. We will continue working with NTPC to keep rates as low and manageable as possible while planning for a more sustainable energy future.”
