Smaller power users to get smaller discount

Prince Edward Islanders using below average amounts of electricity will not get the 14 per cent discount the provincial government estimated in announcing the P.E.I. Energy Accord.

Under the accord between the province and Maritime Electric, the provincial government will pick up a number of capital costs associated with energy production, and Maritime Electric will drop electricity rates an average of 14 per cent, effective March 1.

But that rate decrease is an average, and people who use less electricity than the average Islander will see a smaller discount. The P.E.I. Seniors Federation is concerned many of those people are elderly, and living on fixed incomes.

Daisy Bruce is one of those people.

"I need medication, I pay $200 a month for that, and to have to pay $78 for electricity it's getting pretty hard," Bruce told CBC News Wednesday.

Bruce will only see about a 10 per cent drop in her power bill. That's because the bill has two basic components: a service fee, up to $27 for residential customers on P.E.I.; and usage billing, based on how much electricity you use. On P.E.I., both those charges are higher than in any other province.

The service charge isn't dropping. The discount only applies to usage, so people who use less electricity will not see their bills drop as much.

Roger King has been advocating for lower power rates on behalf of the P.E.I. Senior Citizens' Federation. He's happy to see any reduction, but says this should only be the beginning.

"Could they consider a different tariff rate for the low end users, particularly for seniors, and particularly with regard to the service rate," said King.

"That service rate is a constant charge every month."

Energy Minister Richard Brown said the government is working hard to improve power rates for Islanders.

"My objective is not to be the highest rate in Canada, as we are right now," said Brown.

"I'm fighting it, I will continue to fight it."

Even after the March 1 drop, P.E.I. will still have the highest power rates of any province.

The P.E.I. Seniors Citizens' Federation, while grateful for the decrease, is already expressing concerns about what happens in two years, when a freeze on rates expires. Over that period, the accord could cost taxpayers up to $220 million.