Newfoundland Power reports no pricing errors after sifting through 7,500 bills, following public outcry
Colder February temperatures drive bills higher than usual, CEO says
Newfoundland Power says a review of more than 7,500 customer bills found zero anomalies, and reiterated past comments that a colder and windier February is to blame for power bills that might be more expensive than usual.
Newfoundland Power CEO Gary Murray told reporters Monday that all bills are already reviewed before they're sent to the customer, but every bill was reassessed for errors.
"No billing anomalies were identified," he said.
The review follows 577 calls from concerned customers over inflated bills in recent weeks. Murray said that translates to between 40 and 50 calls a day.
Residents have also shared their concerns with CBC News, who said their bills doubled in some cases. Some had also voiced concerns over the accuracy of their meter readings.
The Public Utilities Board acted on those calls, asking Newfoundland Power to report on how it makes sure meter readings are accurate.
Murray said Newfoundland Power has independently tested more than 5,000 metres through federal agency Measurement Canada since 2018, and has a 99.9 per cent accuracy rate.
The report brought four major findings as to how bills could have been higher than normal in February.
One of those findings is a colder month, with below-average temperatures that lasted for several weeks.
Using data collected by Environment Canada, Newfoundland Power noted a 5.6 degree drop in average temperatures between January and February and 20 per cent more wind on average.
"While we have had a milder winter overall, that does not mean that it has not been cold," Murray said.
"Colder outside temperatures and wind cause home heating systems to work harder to maintain the temperature set on your thermostat. This means higher heating usage and cost, even when the thermostat setting remains the same."
There are also other factors Murray said help drive bills higher, like fluctuations in the number of billing days.
For example, if a meter was scheduled to be read on a Saturday and was it was instead read first thing Monday morning, your bill would include two extra days.
"If a customer had, you know, one extra billing day in the month.... In 30 days, that's a three per cent increase, or three days [extra] is about a 10 per cent increase," Murray said.
A seven per cent rate increase that came into August would also increase bills year-over-year from February independent of usage, he said, adding $7 to every $100.
Murray said Newfoundland Power hopes to better explain the impact of winter weather on electricity costs starting next fall, and is continuing efforts to work on flexible payment options for residents.
That change could be shadowed by another increase as the company is expected to file a rate application before the end of April that would likely bring an increase in July.
Smart metres would solve concerns: consumer advocate
Dennis Browne, Newfoundland and Labrador's consumer advocate, told CBC News Monday he doesn't take exception to what the report says, but believes public outcry could have been avoided.
He says that could be done with smart meters, which would place more information in the hands of rate payers.
"If people had smart meters, they'd be able to control their own usage and monitor their own usage. They'd be able to see what their usage is every five minutes, if they wanted to," Browne said.
"We can no longer continue with this fiasco during the winter months."
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With files from Mark Quinn and Carolyn Stokes