The cost of electricity jumps 7% next week, and this advocate worries it will hurt the most vulnerable
CBC
Next Thursday, power rates in Newfoundland and Labrador are set to jump by seven per cent, and the head of a seniors' advocacy group says the increase will hurt the province's most vulnerable populations.
Connections for Seniors executive director Mohamed Abdallah said people are already grappling with a cost of living crisis, and the power increase will further hurt those who are already economically strained.
"Any cost of living increase right now is not in the favour of the population, seniors in large, but specifically the most vulnerable amongst them," Abdallah told CBC News.
The residential rate is going from over 13.2 cents per kilowatt hour up to 14.2 cents. Someone who currently pays $300 a month for power will now pay about $321.
Newfoundland Power had asked for a rate increase of 9.3 per cent, which was rejected by the Public Utilities Board in favour of the seven per cent increase.
Many people are already struggling to pay bills, said Abdallah, so any increase will mean other things in their budget will have to be cut, like food, rent and medication.
"They will just go in the cycle of poverty as they keep being in debt, being evicted, losing their housing arrangement and they are just set behind every time things go more expensive," said Abdallah.
It's particularly difficult for seniors who live on fixed incomes and don't have much money to spare, Abdallah added. He's concerned not only by the amount of the increase but by how much time consumers have been given before the increase shows up on bills.
"I know that there's some government programs that do subsidies, but not everybody is eligible for it," Abdallah said.
"A lot of the problems we see with homelessness and people being evicted comes with the power bill not being paid."
He'd like to see a discounted power rate for seniors and people on income support.
People CBC News spoke with outside the Avalon Mall in St. John's are calculating how the rate increase will affect them and what they will need to cut out in order to afford it.
Tracey Dangler said her two-bedroom apartment comes with a $300 power bill and the increase is going to hurt her and her family.
"Even going up by $15 or $20 a month — that's taking food off my table and off my grandchild's table. So no, it's not good," said Dangler.
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