HALIFAX – Nova Scotians may need to brace for significantly higher electricity bills by the end of this decade, according to recent projections. With potential rate increases and the possible addition of a federal carbon tax, the average cost of electricity could rise substantially by 2030.
Based on current rates, the average household in Nova Scotia currently consumes about 18,415 kWh of electricity per year, costing around $3,236.32 annually. However, these costs are predicted to rise due to a variety of factors.
The most immediate factor is a recently approved 14% increase in electricity rates over two years by Nova Scotia Power, representing a 6.9% hike each year. In addition, the potential implementation of a federal carbon tax could increase the price of electricity by a compound average of 17.5% from 2023 to 2030.
Given these circumstances, it’s reasonable to expect similar rate increases to continue through the end of the decade. The estimated cost of electricity in 2030, applying a compound annual growth rate (CAGR) of 6.9% to the current cost, could see average households paying significantly more for their electricity.
These increases will not only affect households with average electricity consumption. Nova Scotians with higher electricity usage could see their bills rise even more dramatically. For example, a household that currently pays $1,000 every two months for electricity could see their bimonthly bill rise significantly by 2030, when applying the same CAGR.
However, it’s important to remember that these figures are estimates, and the actual cost could be higher or lower depending on many factors. These include changes in consumption patterns, technological advancements, policy changes, and variations in the rate of inflation.
Nova Scotia Power and the government are aware of the potential impact of these rate increases on consumers. As such, they continue to explore various strategies to mitigate these impacts and ensure a reliable and sustainable supply of electricity for all Nova Scotians.
Please note that the precise increase in costs could be different due to a range of factors not considered here, including changes in individual energy usage, the exact rate of inflation, and the specific impacts of Nova Scotia Power’s transition to more sustainable energy sources.
