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22 January 2025

Premier Holt Announced Audit Amid NB Power Outage Controversy

Public outcry over skyrocketing electricity bills leads to urgent government action and independent investigation.

Residents of Edmundston and broader New Brunswick are expressing outrage over skyrocketing electricity bills from NB Power, prompting Premier Susan Holt to announce the initiation of an independent audit to address the concerns. This move marks one of the first significant tests for the newly elected Liberal government, which has faced criticism amid high inflation affecting households across the province.

The problems began to escalate late last week when residents started receiving their December electricity bills, many of which were considerably higher than expected. Premier Holt, flanked by Deputy Premier and Energy Minister René Legacy, held a virtual press conference on Tuesday to address the mounting public concern, stating, "We’ve heard your concerns... responding to your concerns with quick action." The independent audit, which Legacy mentioned would be conducted by a third-party firm, aims to shed light on the factors causing the spike.

This culmination of complaints reached boiling point after December's cold weather significantly raised heating demands, resulting in what many households felt were exorbitant costs. Politicians from both major parties reported receiving numerous calls and complaints about the sharp increase, many focusing on the new billing structure established by NB Power after rates increased by 9.7 percent last year. This did not include variances associated with misjudged budget estimates from the prior year, adding another layer to why consumers faced bills far above their expectations. Residents voiced their frustrations online, with one common sentiment reflecting their anger at what they viewed as the company's inability to manage its pricing effectively.

Specifically, households relying primarily on electric heating experienced what should have been routine bills transforming dramatically; for example, a typical $500 bill shot up by nearly $64 due to the latest rate hikes. The timing of these hikes coincided with New Year's Day, when the government’s promised 10 percent rebate on electricity consumption did not begin, meaning many residents still faced the full cost of their December usage.

Following the public backlash, NB Power's social media channels, including Facebook, became inundated with complaints. The utility company acknowledged receiving more than 1,000 responses, many of which expressed dismay and frustration about the rate increases. The utility's spokesperson, Dominique Couture, remarked, "We welcome the opportunity to address these issues and help to address the concerns of New Brunswickers." Such statements, though, have done little to quell the tide of dissatisfaction.

Adding to the ire were some logistics of the December billing process; not only was it colder than the same month last year, but the recent billing period was five days longer, which contributed to higher consumption figures. This was compounded by adverse weather events earlier in the month, which led to power outages for many customers, perhaps ironically reducing their energy consumption.

Despite the gravity of the situation, Deputy Minister Legacy clarified at the press conference, "NB Power is telling people there are reasons for the higher prices... but it’s clear we need to do more to understand how these costs are calculated." They disputed any implication the shaping of higher bills was due solely to new smart meters, asserting most of the actual installations had not yet reached areas affected by the complaints.

The growing frustration among consumers also prompted emergency meetings between NB Power executives and politicians from both the governing Liberals and opposition Progressive Conservatives on Monday. Energy critic Kris Austin voiced how these complaints seemed to exceed the usual discourse on electricity costs. "We always hear people complain about electricity rates, but this one seemed to be out of the ordinary," he stated, underscoring the need for public reassurance through independent oversight.

Former regulatory practices also became part of the discussion as Austin criticized previous governmental decisions leading to dramatic rate increases, blaming past freezes on proper auditing and review of rates. "We’re paying now for past government decisions on freezing those rates," he noted. The current administration faces challenges sorting through this legacy of fiscal decisions, which some experts say has built up pressure for the utility to act.

With the January legislative session just around the corner, the independent audit’s deadline aligns with scheduled discussions among lawmakers from February 18 to 21, where findings will be reviewed detailing customer readings versus actual usage. Holt, acknowledging the public's urgent situation, remarked, "We have to dig... bottom of it as quickly as we can... to prevent recurrence of these issues going forward."

The ambiance around NB Power has been thoroughly shaken, leading many consumers to express distrust and fear of their utility’s reliability. Across various platforms and conversations, including those on social media, remarks such as "Maybe stop passing the failures on to your customers by increasing rates" became emblematic of the mood prevailing among frustrated residents, with calls for accountability echoing loudly.

Public sentiment appears to highlight the complex interplay of climate, regulatory decisions, and corporate management pressing against the consumer backdrop of New Brunswick. This atmosphere of dissatisfaction squares off against the utility’s narrative of external pressures like extreme weather and building operational challenges. The coming weeks could very well define the relationship between NB Power and those it serves, as hard questions remain about just where accountability lies.

At the heart of all this remains the necessity for the province to balance fiscal health with consumer protection standards. Premier Holt, continuously involved with her cabinet's assessment of NB Power's challenges, has yet to publicly condone any rate freezes for customers below some future threshold amid continuing scrutiny of what can be seen as institutional mismanagement. The anger surrounding NB Power bills reveals just how interconnected these modern utilities are with everyday life, and the impact they possess over household health and well-being.