New Brunswick residents could see big increases in their power bills over the coming years.

NB Power has asked the Energy and Utilities Board for a 9.8 per cent rate hike in 2024-25.

It has also requested a three per cent increase through a Variance Account Recovery to help cover higher-than-expected costs.

“We understand that raising rates is not something anyone wants, particularly when customers are already paying more for their everyday needs like housing, gas and groceries,”  president and CEO Lori Clark said in a news release.

“However, to continue to provide the reliable electricity customers need in the face of unprecedented challenges and change, an increase in rates is required to meet customer demand and prepare for the future. This is not business as usual.”

If both increases are approved in full, the average residential power bill would increase by nearly $25 a month.

The utility said it will also be seeking a 9.8 per cent rate hike in the 2025-26 fiscal year.

Clark said the utility has cut about $50 million from its operations in the last year with more to come this year, but it is not enough to offset the rising cost of producing energy.

“We are leaving no stone unturned as we look at every aspect of our operations and make the necessary changes to manage our costs and improve our financial situation, build equity and keep rates as low as possible for New Brunswickers,” said Clark.

“The decision made by the New Brunswick Energy and Utilities Board on today’s two filings related to rate pricing will greatly impact our ability to respond to the utility’s needs of today and prepare for the future.”

The potential new rate, if approved by the EUB, would come into effect no earlier than April 1, 2024.

More to come.