NS Power owes customers millions: report
Posted Jul 12, 2012 05:26:55 AM.
This article is more than 5 years old.
Nova Scotia Power is being accused of overcharging its customers by $22 million and an independent consultant’s report says the company should be offering a refund.
A report by Liberty Consulting points to several instances when the company overpaid for fuel during the last two years.
While NSP denies the claim, customers are not surprised.
“They pretty much charged us whatever they want,” said Mike. “The government is impotent to do anything about it.”
“That’s pretty surprising. It’s a lot of money,” said another man.
The Chronicle Herald reports the utility paid $12.8 million more than it should have for natural gas during the winter of 2010-11 because of a problem with a price-hedge mechanism. The nature of that problem has been edited out of the public document.
The audit says the company bought natural gas at a higher price than it should have during the same winter, for a $6 million overpayment. The audit points to another $3.6 million in overpayments because the utility didn’t change the type of coal used at the Lingan power plant in Cape Breton in December 2010.
Rene Gallant, NSP’s vice-president of regulatory affairs, told the paper the assessment is wrong and that NSP always gets the best prices for fuel.
One customer wondered whether NSP will be returning the money to its clients in light of the audit.
“Do they have to?” asked Sue. “Or can they just put it in another bank account for themselves?”
The audit has been released nearly two months before NSP is to go before the Utility and Review Board to request a six per cent rate increase over 2013 and 2014. It will be the seventh increase in 11 years.
Ratepayers are mixed on whether they’d prefer a rebate or their rates to remain unchanged.
“A cash-in-pocket rebate would definitely be my choice,” said one man.
“It would be nice to get some back,” said Sue. “I’d prefer not to have an increase because in the long run I think there would be far more advantage than just getting a one-time refund.”
The audit comes after several months of controversy surrounding the utility in which CEOs have received 30 per cent salary increases, million-dollar bonuses and throwing lavish parties.
