Manitoba government advertises electricity rate freeze that isn't official yet
Province maintains rate freeze happening in 2025 despite not having the final say on price changes
Manitoba's NDP government is using a new advertising campaign to claim it's fulfilled an election promise to freeze electricity rates — even though it cannot guarantee prices will be suspended this year.
The advertisements, seen on billboards throughout Winnipeg beginning in January, state the Manitoba "Hydro rate freeze" took effect on Jan. 1.
However, the government's promotional materials are not entirely accurate, as it is only the independent Public Utilities Board with the authority to enact a rate freeze, and it has yet to issue a ruling.
The advertisement also claims the rate freeze started in January, although nothing changed with the flip of the calendar. The Public Utilities Board previously approved a one per cent rate increase that started with the 2024-25 fiscal year.
Any rate freeze approved through the independent rate-setting process, or an increase or decrease in the rates, wouldn't happen until this April at the earliest.
'Confusing' for government to take credit
Katrine Dilay, a lawyer for a group representing consumers and low-income Manitobans, said the government is giving people the impression it has the final say on electricity rates.
"I think from our clients' perspective, I guess it is a little bit confusing to see a Hydro rate freeze being announced when that authority, in fact, rests with the Public Utilities Board," said Dilay, who represents the Manitoba branch of the Consumers' Association of Canada.
She said the consumers' group cannot say definitively if the proposed rate freeze is advisable without a public hearing.
"Consumers are best served when the Public Utilities Board is regularly reviewing the rates and the evidence underlying those rates," she said.
The independent regulator has routinely rejected what the government and its Crown corporation wanted.
Earlier this month, the board rejected Manitoba Public Insurance's request for a three per cent rate hike and instead boosted rates by 5.7 per cent. Dilay said at the time that MPI was unable to explain why it was seeking a lower rate or provide any data to demonstrate it was warranted.
In the case of Manitoba Hydro, Dilay questions if a rate freeze is advisable.
The public utility is saddled with nearly $25 billion in debt, as well as the looming requirement to spend billions of dollars to replace aging infrastructure and billions more to increase generating capacity to satisfy growing electricity demand.
"There are questions as to whether the zero per cent is the right rate at this point in time, and that's certainly why our clients would strongly advocate for an evidence-based public process," she said.
Tories worry of high rate hikes
Lauren Stone, the Progressive Conservative critic for Manitoba Hydro, said the government's rate freeze advertisements are "misleading," but the "bigger concern" is what freezing electricity rates will mean to consumers' bills in later years.
"A rate freeze today could mean a rate shock tomorrow, and Manitobans deserve to know how much of a rate increase they should expect in 2026 and 2027."
Manitoba Hydro spokesperson Peter Chura said the utility will file its next general rate application to the Public Utilities Board before the end of March, which will encompass the 2025-26, 2026-27 and 2027-28 fiscal years.
He said Hydro wouldn't propose any changes to electricity rates for the 2025 calendar year.
Adrien Sala, the government minister responsible for Manitoba Hydro, wouldn't entertain questions around the province's advertisements being inaccurate.
Instead, the province's finance minister said the government is "really proud to have delivered" on an election promise "that will save Manitobans money in every corner of the province."
Sala said Hydro is in a position to offer flat electricity prices, in part, because it no longer has to abide by debt-reduction targets the former Progressive Conservative government set through legislation.
He acknowledged the Public Utilities Board has the "final say" on electricity rates, "but again, we've got Manitoba Hydro who are confident that we can deliver these savings to Manitobans for 2025," Sala said.
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