The Nova Scotia Utility and Review Board has approved rate increases for Nova Scotia Power, with the first hike taking effect on Friday, May 1, 2026. The decision was announced on April 30, following a lengthy review process.
Rate Increase Details
The approved rate hikes will be implemented in stages, with the first increase of 3.5% effective this week. Subsequent increases are scheduled for later this year and into 2027. The cumulative increase over the next two years is expected to be approximately 8%.
Nova Scotia Power had originally requested a 10% increase over three years, citing rising fuel costs, infrastructure investments, and the need to transition to renewable energy sources. The board, however, trimmed the request to balance consumer affordability with the utility's operational needs.
Impact on Customers
Residential customers will see an average monthly increase of about $5.50 on their bills starting Friday. Commercial and industrial customers will face higher percentage increases due to their consumption patterns.
Consumer advocates have expressed concern about the impact on low-income households. The province has a heating assistance rebate program for eligible customers, but advocates argue it is insufficient to offset the cumulative increases.
Utility's Justification
Nova Scotia Power stated that the rate hikes are necessary to maintain reliable service and meet environmental targets. The utility is investing in grid modernization and renewable energy projects, including wind and solar, to reduce reliance on coal.
The company also noted that fuel costs have been volatile due to global energy market fluctuations, and that it has absorbed some costs to minimize rate shock.
Board's Decision
The Utility and Review Board acknowledged the need for investment but emphasized the importance of affordability. The board's decision includes conditions requiring Nova Scotia Power to report on cost-saving measures and to explore options for rate stabilization.
This is the first rate increase approved since 2023, following a period of rate freezes and rebates during the COVID-19 pandemic.
