Nova Scotia Power Faces Backlash Over Proposed Rate Hikes

HALIFAX, Nova Scotia — Nova Scotia Power has come under fire for its plans to increase electricity rates over the next two years. The utility aims to raise rates by an average of 2.1% across all customer classes in 2026 and again in 2027, with residential customers facing increases of 4.1% each year.

The proposed hike, which requires approval from the independent Nova Scotia Energy Board (NSEB), has sparked criticism from local politicians and residents alike. Premier Tim Houston labeled the utility as ‘out of touch’ with the community’s needs. His comments reflect growing frustration over rising energy costs amid economic uncertainty.

Nova Scotia Power defends the rate increase, stating it is necessary for grid modernization and climate resilience. The utility emphasizes that the decision resulted from ‘strong collaboration’ with various customer representatives, including the Consumer Advocate and several municipal officials.

This current rate proposal follows a previous settlement that secured a 14% overall increase over two years, amid regulatory caps on rate hikes. Many stakeholders fear that continued rate increases may push financial burdens onto consumers, particularly as climate-related costs rise.

Critics express concern about Nova Scotia Power’s projected 9% return on equity for its transmission line project, arguing it could result in excessive profits at the expense of ratepayers. Economist Sean Cleary estimates this could generate an additional $4.1 million in profits.

As the utility navigates this contentious landscape, it must balance investor needs with consumer affordability. Ongoing debates about rate increases are also a reflection of broader trends within the utility sector, where the dynamics between regulatory oversight and profitability are increasingly scrutinized.