The topic of Muskrat Falls is never far from the news; from cost over-runs to questions as to whether it should have been sanctioned in the first place, everyone has an opinion. We have been working hard on your behalf to raise awareness about the impact an increase in electricity rates will have on your ability to grow.
Due to the nature of business operations, the vast majority of you cannot reduce your electricity consumption easily. Regardless of how high rates go, a large number of you will find it difficult to lower your electricity usage by switching to a different energy source or adopting conservation measures.
CFIB made a submission to the Muskrat Falls inquiry, making the following recommendations:
- The provincial government should provide a full, transparent, and independent analysis of rate mitigation in Newfoundland and Labrador
- The provincial Board of Commissioners of Public Utilities (PUB) should change its 1996-1997 (Order No. P.U. 7) to allow for a revenue-to-cost ratio of zero per cent (i.e. 100)
- The provincial government should reform the legislative and regulatory framework to provide greater oversight on large development projects in hydroelectricity.
The costs of the project must be paid and any increase in taxes or rates for small business owners means you will have to make difficult decisions on how to adjust. That's why it's so important to get rate mitigation right.