Coalition says Hydro rate proposal ‘higher than necessary’

Electricity bills in Manitoba will increase by nearly 11 per cent by 2028 if Manitoba Hydro gets its way — something a coalition representing consumers is fighting.

The Consumers Coalition — made up of the Consumers’ Association of Canada (Manitoba), the Aboriginal Council of Winnipeg, Harvest Manitoba and the Manitoba Seniors Equity Action Coalition — say rate hikes of 3.5 per cent in each of the next three years is “higher than necessary” and will hurt the most vulnerable in the province.

The coalition will state its opposition to Hydro’s rate request at the Public Utilities Board hearings, which started Monday.

Peggy Barker, of the Consumers’ Association, said in a statement the coalition doesn’t believe the increases are justified because the utility hasn’t shown its costs are under control and its future plans are supported by “careful budgeting, evidence-based analysis, and realistic strategic planning.”

The coalition says it has filed evidence that shows the rate hike proposal will, by 2028, jack up costs for the average utility bill by $362.32 a year for those who use electrical heat and $137.28 for households that use natural gas.

Meaghan Erbus, Harvest Manitoba’s director of network, advocacy and education, said in a statement that the province’s largest food bank knows many households are already paying more than 10 per cent of their income “just to keep the lights on.”

The utility’s application is particularly concerning because during a drought it should try to “cut costs rather than raising rates to protect its bottom line,” said Damon Johnston, president of the Aboriginal Council of Winnipeg.

In a statement, a Manitoba Hydro spokesman said while they appreciate what the intervenors are saying, the utility believes “strongly” the proposed hikes will help it meet its mandate for providing “safe, reliable and affordable energy,” while also looking towards future power requirements.

The spokesman said even with the rate proposals, Manitoba will still have the second lowest residential rates in the country and among the lowest industrial and commercial rates.

The PUB rate hearings will continue through to next month. Any approved rate changes would begin Jan. 1, 2026.

kevin.rollason@freepress.mb.ca