Thank you, Mr. Speaker. I just want to follow up on my Member’s statement, with regard to the NWT Power Corporation, with the Minister in the specific case of the grocery store in Fort Simpson that failed. Can the Minister do a post-mortem on that whole situation and provide some recommendations that this cannot happen to another business? Just to work backwards, Mr. Speaker, I think it would be a good thing to look backwards to ensure those types of businesses don’t get into those same types of arrears situations with the NWT Power Corporation. Thank you.
Thank you, Mr. Menicoche. The honourable Minister responsible for the NWT Power Corporation, Mr. Roland.
Thank you, Mr. Speaker. Mr. Speaker, as the Member stated, on the closure of this grocery store, this is something we would preferably not have happen in the Territory. Unfortunately, the cost of electricity in our smaller communities is high, hence the review that was done by the government on the electricity rates regulation distribution subsidy process. We are hoping to come back, as Minister McLeod is the lead on that, with solutions for the next fall planning cycle.
Specifically to this piece, there is a lot of work that has been done in trying to work with the customer here. But it comes back to the cost of energy in that area. I will commit to the Member to provide him the information I have. On the bigger picture, we must do what we can to ensure we try to minimize these types of occurrences from happening in the future. Thank you.
Like I said, any time we lose a business it’s a sad thing for any community, big or small. If the NWT Power Corporation does a post-mortem on the situation, because it was ongoing for awhile, if they look back and assess the situation, they can learn from it and it’s something that can be a positive thing to share with the community or any other businesses that might be experiencing the same type of pressure and extra costs with power, Mr. Speaker. Thank you.
Under the existing structure that we have to operate in as a Power Corporation with the rate bases as they are, the collections that must be brought in to ensure we keep the corporation in a healthy state means the more arrears or accounts that are in arrears, it affects the rest of the customer base in that area. That is why we have to look at a different way of operating and how we structure ourselves as the Power Corporation. That includes setting direction as a government overall. We will look at the process and information there. I know there were many steps taken to try to help out, but ultimately it comes down to trying to stop the arrears from starting to begin with. One of the bigger ways of doing that is to make a fundamental shift in the way we deliver energy across the Northwest Territories and that work is being done and hopefully we’ll have Members supporting the recommendations that are made. Thank you.
I am really pleased to see the work that the government is doing with the review of the electricity rates and, if the Minister can confirm it, we’re also looking at the commercial power rates as well. We know about the cost of living pressures and we want to prevent this type of situation that’s happening. Will the Minister tell us if the commercial rates will also be reviewed fully under this review? Thank you.
The commercial rates, as the Member has discussed, is one of the high cost areas of doing business in the Northwest Territories in our more remote communities, especially in the thermal communities that don’t have access to hydro possibilities. Besides expanding that and trying to create that, the existing framework needs to be changed. We are looking at potential ways of doing that that would lower the commercial rates in our communities. We are hoping, again, that as we bring that work forward, Members will support it and we can make the necessary changes going forward and that will, again, benefit the commercial side of power in the Northwest Territories.
Thank you, Mr. Roland. The honourable Member for Yellowknife Centre, Mr. Hawkins.
