NB Power works hard to forecast the costs of delivering electricity for the upcoming year. These forecasts consider various factors, including energy consumption, weather, commodity prices, exchange rates and hydro flows. However, variances can occur due to factors beyond NB Power’s control, leading to additional revenue or losses. 

In 2021, changes to the Electricity Act introduced a Variance Account Recovery (VAR) mechanism to provide greater transparency for customers and ensure electricity costs are accurately reflected in rates. 

Each year, NB Power is required to file a VAR application with the New Brunswick Energy and Utilities Board (NBEUB). This mechanism allows for rate adjustments: 

• If actual costs are lower than anticipated, customers may receive a credit. 
• If actual costs are higher than anticipated, rates may increase to recover the difference. 

2025/26 VAR Filing

On December 12, 2024, NB Power filed its annual VAR update with the NBEUB, which included an adjustment to account for variances over the past year. These variances were driven by factors such as lower-than-expected nuclear and hydroelectric production, higher commodity prices, challenges with supply sources, and reduced export opportunities. For the fiscal year starting April 1, 2025, the VAR charge, if approved by the NBEUB, will be 0.04¢/kWh more than the current charge. For the average residential customer, this means an increase of about 54 cents per month.

What This Means for Customers

The NBEUB will review the VAR application, and if approved, the updated charge will take effect on April 1, 2025. The VAR mechanism ensures transparency by adjusting rates to align with actual costs. It can result in either a charge or a credit, depending on cost variances.

How to Manage Your Energy Costs

We understand rate changes can be challenging. That’s why NB Power offers resources to help customers manage energy usage and costs: 

• The Enhanced Energy Savings Program provides free heat pumps and insulation to eligible households. 
• Equalized Payment Plans help customers budget with predictable monthly payments. 
• Payment assistance resources are available for those in need.