The provincial government is directing the Public Utilities Board to provide a one-time credit for customers whose electricity is affected by the price of oil.
Electricity customers who are not a part of the Labrador interconnected system, including those using diesel on the north coast of Labrador, will receive the credit.
The credit, announced Thursday morning which has an estimated surplus of about $50 million because low oil prices mean NL Hydro has spent less on fuel for the Holyrood thermal generating station.
Normally a surplus would be paid out over a year, but customers this year will get the credit in a lump sum, as early as July, with the amount varying based on electricity usage.
The provincial government estimates someone whose power costs an average of $200 a month would get a one-time credit of about $130. Details of the plan will be left to the PUB.
Both businesses and residential customers will also be able to defer payments, with up to $2.5 million in interest being waived on overdue accounts.
Customers will be required to make agreed-upon monthly payments to their account, and there will be interest assistance for 15 months, beginning June 1st.
Labrador’s interconnected grid isn’t affected by the price of oil, but those customers can take advantage of the interest relief.
Relief policies already put in place during the pandemic, like not disconnecting customers and providing options for more flexible bill payments, will continue.