Churchill Falls power rebate doesn't go far enough to help people save, residents say

Electricity customers in Newfoundland and Labrador say the proposed 15 per cent rebate on their bills once the new Churchill Falls deal is signed doesn't go far enough.

The Department of Finance said earlier this week the rebate will be implemented once definitive agreements are reached with Quebec on the new deal. It expects the rebate to save the average household $351 a year.

The rebate will cover the first 2,000 kilowatt-hours of electricity used each month, and be applied directly to electricity bills.

Ryan Parsons welcomed the proposed change, but questioned how much people will actually feel the discount.

"Fifteen per cent off my power bill would be just extra fun money for our family to go out and do a few things," Parsons told CBC News Friday. "[But] $350 a year, I mean that's maybe, what, one good light bill in the winter? Yeah, it's not a big discount in my opinion."

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• Here's how you can get a 15% power rebate — once the Churchill Falls deal is finalized

Shravan Pryag, who lives in the downtown St. John's area, said any rebate is a good one.

"The old buildings, they rack up [electricity] in winter, right? So 15 per cent off would be pretty good," he said.

But other ratepayers, like Loretta and Sheila Sparrow, say they'll believe the support when they see it.

WATCH | Residents share their thoughts on the proposed rebate:

"That's a joke, right? Yeah, right. Give it back to whoever suggested it,"said. "It's not enough, far from it."

"We gotta wait for it to go ahead," Shelia added. "Because the government never sticks to anything."

Questions from seniors arising: Not-for-profit

The head of St. John's-based not-for-profit Connections for Seniors also believes it might not go far enough.

While any rebate that gives money back to residents is a good step, Mohamed Abdallah said the expected annual savings reported by Premier Tony Wakeham only translates to around $29 a month.

"That doesn't sound like much. But again, it's a rebate, it's money back in people's pockets," Abdallah said.

"There's a lot of questions that are arising. [One of them] is how can we make it actually effective to go back into seniors' pocket."

Abdallah said he has questions around how the rebate will apply in scenarios that seniors face — like those who pay for electricity as part of their rent and how savings can be maximized when bills are naturally higher in the winter months.

He also hopes the government can continue to do more to address the cost of living — especially for seniors.

"Some of them turn off heat in their rooms. Some of them have half the house cold, half the house warm, in order to keep up with the bills," Abdallah said.

"I think lowering the cost of living is the ultimate goal, not putting cash in people's hands. If we can do that, and we can lower a little bit of that hike … I think people will feel it more, and stronger."

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