The new distribution rates for Niagara-on-the-Lake Hydro Inc. (“NOTL Hydro”) take effect on May 1, 2016. Residential and small business customers will see an average rate decrease on the overall bill of -2.2%. Larger customers will see an average rate increase on the overall bill of 7.6%. Distribution rates represents less than a fifth of a typical residential customer’s bill.
Niagara-on-the-Lake Hydro’s recently updated its billing cycle so the first bills with the new rates will not be sent until mid-June, 2016. It will also be the first bill sent with updated electricity rates which have increased by approximately 3.9% for the next six months.
“All our customers are being negatively impacted by the ever rising cost of electricity,” said NOTL Hydro President Tim Curtis, “so it is important that we manage our costs prudently. There will be ups and downs on a year to year basis but over the long term we should keep distribution rate increases at or below the rate of inflation.”
Distribution rates for Niagara-on-the-Lake customers have varied over the last decade. Residential customers now pay on average 8% less than they did in 2006. Small business customer rates have increased by an average of 11% and large business customer distribution rates are on average 23% lower. Over the same time period inflation totaled 18%. The cost for electricity, in comparison, has increased by 99% in the same time frame.