The energy regulator in New Brunswick is set to reassess a fuel charge to accommodate the expenses associated with federal carbon regulations, despite assurances from the premier and finance minister that they would eliminate the levy by the year’s end.
Recently, adjustments have led to an increase of up to 8.1 cents per liter for gasoline and nine cents for diesel in the province. Premier Susan Holt, during the election campaign, had pledged to abolish the carbon adjuster, which allows the costs of clean fuel regulations to be transferred to consumers at the pump.
Although Holt initially hesitated due to concerns from retailers, she later affirmed in September that the promise to eliminate the charge by December 31 would be upheld. However, the Energy and Utilities Board has initiated a review to determine the appropriate cost of the adjuster for consumers in the upcoming year, scheduling hearings for December 16, 17, and 18.
Energy Minister René Legacy clarified that the government’s intention to remove the carbon adjuster before the year’s end has been communicated clearly, even though the legislation to eliminate the adjuster has not been enacted yet. David Young, the executive director of regulatory affairs at the EUB, mentioned that any modifications to the review process would only be considered once the legislative changes are finalized.
Progressive Conservative MLA Kris Austin expressed his skepticism about the necessity of the adjuster review, deeming it a questionable allocation of the board’s resources. He questioned the purpose of the review if the premier intends to abolish the charges anyway.
Carol Montreuil, the vice-president of the Canadian Fuels Association, criticized the province’s interference with the EUB’s review process, emphasizing the importance of allowing the regulator to evaluate the actual costs associated with federal regulations.
Despite the likelihood that the EUB’s review may not conclude by the year’s end when the adjuster is anticipated to be removed, Green Party Leader David Coon sees value in examining whether the EUB formula accurately reflects the costs of complying with federal regulations.
As the review unfolds, it remains unclear whether the province will await its completion before eliminating the adjuster, as Legacy did not respond to inquiries on the matter.