Commercial power rates in coastal Labrador must
be addressed in budget
The cost of power for commercial customers in coastal
Labrador communities is four to five times higher than rates in other
parts of Labrador and this must be addressed in this year’s budget, says
Opposition Leader Yvonne Jones.
Jones recently submitted a position paper to Premier
Williams and Finance Minister Jerome Kennedy highlighting the discrepancy
in commercial power rates on the coast of Labrador. The rates being paid
in some coastal communities is up to 20 cents per kilowatt hour, versus
the five cents in other regions of Labrador and the 8-9 cents paid on the
Island portion of the province.
“If coastal Labrador is to be competitive and able
to attract new business, lower commercial rates are necessary,” said Ms.
Jones. “There are many benefits of establishing business in coastal
Labrador, but the high power rates are acting as a deterrent for
businesses. With the new highway soon opening, more opportunities will be
available to the south coast. I encourage government to look at this
circumstance and find ways to ensure more competitive commercial rates.
“Government is looking at developing the Lower
Churchill and running transmission lines to the Island, yet there is no
discussion that some of this power be used in coastal Labrador. Addressing
this problem and immediately providing rate subsidies should be seriously
considered by government and I can only hope it will be addressed in this
year’s budget.”
