Despite customer backlash and operational issues, the Nova Scotia Energy Board has approved a rate increase application from Nova Scotia Power—with conditions pending.
Though a final rate increase was not set, the board reported in its decision on Wednesday that it will be “slightly lower” than Nova Scotia Power’s original ask of 3.8% in 2026 and 4.1% in 2027. Nova Scotia Power has two weeks to submit its revised increases.
However, Nova Scotia Power didn’t get off scot-free. The energy board laid out several conditions it must follow in 2026 and 2027 for the rate application to be approved, including:
- an $8-million reduction in operations, maintenance and general expenses (on top of a previously promised $9-million cut);
- a reduction in executive compensation;
- a $1.8-million reduction in fuel and purchased power costs;
- changes to the utility’s split distribution system costs onto different customer groups.
The utility also faces an outright denial of about $1 million proposed for a general rate application deferral account, and a proposed fee for customers who have not agreed to the installation of a smart meter for remote meter reading.
To further complicate the situation, the board did not decide on a date to institute the 2026 rate increase, which could be retroactively applied to customers’ bills. The board puts the blame on Nova Scotia Power, as they submitted their application in September 2025, leaving little time for a final decision prior to the start of 2026. No judgment was made on whether or not customers would have to pay the increased rate on previous bills when the final order is made.
In a summary of its decision, the energy board addresses concerns customers have with Nova Scotia Power’s public perception, stemming from its data breach last year, which potentially lost the personal information of its entire customer base to hackers and reports of inaccurate bills that are way above average. It says that while they cannot make a decision based on issues of reliability or public opinion, the board can continue to review ongoing issues and could impose regulatory measures in the future, depending on how those investigations turn out. The board also added that it cannot adjust rates based on income or create a Mi’kmaq Rate Class under the Public Utilities Act.
Thoughts on the increase
A Nova Scotia Power spokesperson shared some words from President and CEO Vivek Sood on the decision.
“We’re committed to improving reliability and delivering service our customers can count on while keeping rates as low as possible—and we have concrete plans in place to meet these commitments,” reads the statement from Sood.
“As we’ve seen this winter, continued investments in the electricity grid are critical, both in terms of the reliability of our system during storms and the supply of electricity during extreme cold snaps. Today’s decision by the Nova Scotia Energy Board allows us to continue the important work our teams are doing in communities across the province to meet our customers’ expectations.”
On Wednesday, the Premier’s Office put out a press release in which Premier Tim Houston says he strongly disagrees with the board’s decision, adding that Nova Scotians deserve “reliability, transparency, fairness and choice.” He had previously called the utility’s rate application tone-deaf in light of its failures.
Houston argues that the way forward is not to rely on Nova Scotia Power, but instead on natural gas and wind projects within the province, which he has continually pushed for after making himself the provincial Energy Minister in a 2025 cabinet shuffle.
Earlier this month, it was reported that Houston would not consider a Nova Scotia Power buyback. The utility was a Crown corporation owned and operated by the province until the PC government of 1992 sold it off for $192 million.
Meanwhile, the NSNDP have continued to push for a review of Nova Scotia Power’s ownership, a step party leader Claudia Chender believes must be taken before commenting on whether or not it’s possible.
As for the rate increases, Chender shared her thoughts in a press release on Wednesday. She says the decision will directly impact families who are already struggling with the rising cost-of-living, and criticizes Houston’s government for failing to address the utility’s rate increases since taking power in 2021.
“For five years, the Houston government has failed to meaningfully address skyrocketing utility rates,” says Chender. “With today’s increase, by the end of next year, families will be spending $600 more for power since the premier was first elected.”
Nova Scotians should be far more upset about the hydro increases than the cuts to the arts. Everyone has a hydro bill; not everyone uses the arts. If the Coast wants to keep readers engaged, do more coverage of the former. Like how much Emera invests in the U.S. and why that’s a bad thing for Nova Scotians, except those working for Emera, of course.
Brendan did not mention that NS Power shareholders get a guaranteed 9% interest on their investments. In my opinion this should be no more than 5%, which is still a good rate of interest. That would free up millions of dollars that could help people who cannot afford their power bills. Also, the salaries for the CEO and other top people are extravagant and should be seriously cut-back. And there should be no bonuses. NS Power does not manage our money well. Neither does the province.
Incorrect. The shareholders, mostly banks, trust companies and pension plans whch receive dividends on behalf of people who have bought mutual funds for their RRSP,TFSA or RRIF or on behalf of pension funds. The dividend provides a yield of circa 4.12%.