The N.W.T. Public Utilities Board has granted approval to Inuvik Gas Ltd. to temporarily raise its rates. The board announced its decision in writing on Thursday regarding Inuvik Gas’s proposed hike in natural gas rates from earlier in the summer.
Effective September 1, the gas distribution charge for residents and the Town of Inuvik will see an interim refundable increase of $6 per gigajoule. This adjustment will raise the gas distribution charge to $41.44 per gigajoule for residents and businesses, and to $47 per gigajoule for the town.
This approved increase is lower than what Inuvik Gas had requested. The company had originally proposed a $10 per gigajoule hike, which would have amounted to a 28% rise in heating expenses for Inuvik inhabitants.
Following the company’s initial announcement, the Town of Inuvik expressed intent to contest the decision and lodged a complaint with the board on July 22. In response to the complaints, Inuvik Gas explained its position in a letter to the board dated August 21. Robin Gaskell, the general manager of Inuvik Gas, justified the proposed increase as necessary to address cost pressures and ensure the safety and reliability of energy services in Inuvik.
The utilities board’s decision highlighted a decline in supply conditions by Inuvik Gas and noted that distribution rates had not been adjusted since 2012. The approved rate hikes are deemed interim and are subject to the board’s final ruling on Inuvik Gas’s application.
In the upcoming weeks, the board has requested additional details from the company for assessment and stated that the complaint process will continue into the autumn season.