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NB's Premier Lord Introduces Sweeping Energy Action Plan, Cuts HST on Energy Sources |
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Written by NB Government
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Tuesday, 28 March 2006 |
Premier Bernard Lord announced on Monday a full rebate of the provincial portion (eight per cent) of the HST on electricity and other home-heating sources. He also committed to bringing regulation to the gas and home-heating-oil markets in the province. The Energy Action Plan has 14 key points, and includes more than $100 million in energy-relief measures.
Regardless of the outcome of a hearing by the Public Utilities Board (PUB) on NB Power's electricity-rate application of 11.4 per cent, government will cap the rate increase at eight per cent. If the PUB recommends a lower rate, government will agree to it and go ahead with its tax rebate on the provincial portion of the HST. If the recommended rate hike is higher, government has budgeted in such a way that it will absorb any amount over eight per cent.
This means that for residential homeowners there will be no increase in their power costs, regardless of what the PUB recommends. The rebate program on the provincial portion of the HST will negate any actual increase.
The HST rebate program will also apply to heating oil, natural gas, firewood, and propane used for heating purposes. The program is effective July 1, 2006.
"We have heard the clear message from New Brunswickers that they need some assistance to meet the ongoing challenges of energy costs," Lord said. "I am very pleased with the package we have put together, and we believe that it will help enormously in providing much-needed relief to New Brunswickers."
Lord added that he hopes homeowners will take advantage of even more programs that will be available through Efficiency New Brunswick, which will have its budget increased to $11.9 million, and will include assistance to small and medium-size businesses, as well as a program aimed at mobile home owners.
"We are very pleased that homeowners will be able to make a positive difference in their dwellings that will save energy and help the environment at the same time," Energy Minister Brenda Fowlie said. "The action plan is a comprehensive package that will have far-reaching, positive results."
Gasoline and home-heating oil regulation will fall under the auspices of the PUB, which is being modernized and given greater responsibilities that will include heating oil, propane, natural gas, and diesel.
In addition to the measures taken on HST rebates and gas and home-heating oil regulation, the Premier outlined a number of measures regarding NB Power. They include:
-the utility must appear before the PUB every three years to publicly outline its programs;
-the cancellation of NB Power's management-bonus program for employees;
-the practice of estimating power bills is ended;
-the utility must find savings of $20 million internally, which will include a review of the ranks of senior management;
-NB Power must continue to actively and aggressively pursue its legal action against the Venezuelan oil companies over the Orimulsion issue; and
-the utility will step up its activity on finding diversification in its fuel sources, including moving more quickly on installing 400 megawatts of wind power in the province.
In addition to the actions outlined by the Premier, government will develop the next phase of the energy policy, as nearly every action item in that plan has been completed.
The Premier also mandated the departments of Finance and Energy, in conjunction with NB Power, to begin the work on a feasibility study for a second nuclear reactor at Lepreau.
Energy Action Plan items:
-fully rebating the provincial portion of the HST;
-capping the rate increase on electricity at eight per cent;
-increasing the budget of Efficiency NB to $11.9 million;
-regulating the price of gasoline and home-heating oil;
-instructing NB Power to find an additional $20 million in savings, including a review of its current composition of senior management;
-cancelling NB Power's management bonus program;
-challenging NB Power to further diversify energy sources;
-discontinuing NB Power's practice of estimating metre readings;
-implementing a policy that NB Power appear before the PUB at a minimum of every three years;
-instructing NB Power to aggressively continue with its legal action against Venezuelan oil companies;
-modernizing the PUB;
-sending a Letter of Expectation to NB Power;
-conducting a feasibility study of a second nuclear reactor at Point Lepreau;
-developing the next phase of the province's energy policy, since the majority of the 2001 policy has been completed.
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