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NDP calls on N.L. government to eliminate HST on all home heating

NDP Leader Jim Dinn says the high cost of home heating is forcing many residents to make difficult decisions. To help solve the issue, he is asking the Liberal government to remove the provincial portion of the harmonized sales tax from home heating bills.

The province cut HST on home heating in 2012

Man with grey hair in grey suit talking
Newfoundland and Labrador's NDP Leader Jim Dinn is asking the province to reconsider and re-enact the residential energy rebate that the provincial PC government put in place in 2012. (Mark Quinn/CBC)

Skyrocketing power bills from Newfoundland's only utility company has NDP Leader Jim Dinn looking to the past for a solution.

Dinn says people are struggling with the sudden spike of their electricity bills, following reports of some Newfoundland Power bills more than doubling.

"One constituent of mine, who heats their home and hot water with oil and only uses electricity for her fridge, stove and lights has seen her bill triple," Dinn said on Monday."Others are sitting in the dark, lighting candles, calling on blankets to keep warm and choosing between food, their mortgage or their electric bill."

Taking a page from the PC government's 2012 playbook, Dinn is asking the current provincial government to re-enact the residential energy rebate, which introduced an eight per cent rebate on electricity and heating fuel — eliminating the harmonized sales tax.

"Removing the provincial portion of the HST from all forms of home heating, something that has been done before, would go a long way to help people struggling to heat their homes," Dinn said. 

'Not possible'

But Finance Minister Siobhan Coady says removing HST from home heating is not possible. She says that's a federal responsibility.

"The province of Newfoundland and Labrador doesn't have much control, if any control, on what is included in HST," Coady said.

WATCH | The NDP wants the province to reconsider HST on home heating bills:

Home heating costs forcing N.L. residents to make tough decisions, say NDP

19 hours ago
Duration 1:36
The provincial New Democrats are calling on the province to help people struggling with the cost of heating their homes by removing the provincial portion of harmonized sales tax from home heating bills. But as the CBC's Mark Quinn reports, the provincial finance minister says that's not something she can do.

Dinn maintains that HST can be removed with a push from the province.

"Not only is she not going to ask them, she's not interested in asking," he said. "It can be done if there's a political will to do so. But the minister has indicated that they have no political will to do so."

Cold weather, high winds

Glenda Power, spokesperson for Newfoundland Power, told CBC News cold temperatures and high winds contribute substantially to power usage, as heating systems have to work harder to maintain a steady temperature within the home.

She says complaints about increased power usage are common during winter, and customers don't pay for power they don't use. 

"Increased usage doesn't mean you've turned your thermostat up," Power told CBC News on Monday.

The Public Utilities Board has asked Newfoundland Power to file a report on how it ensures the accuracy of meter readings and investigate whether billing errors could have occurred given a high volume of complaints to the board.

The PUB expects Newfoundland Power's findings to be reported to the board by March 21.

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ABOUT THE AUTHOR

Jenna Head

Journalist

Jenna Head is a journalist working with the CBC bureau in St. John's. She can be reached by email at [email protected].

With files from Mark Quinn

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