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How does NB Power's billing work and why is my electric bill so high?

Question

How does NB Power's billing work and why is my electric bill so high?

Answer from Electric IQ

Understanding NB Power Bills and High Electricity Costs

New Brunswick has some of the highest electricity rates in Canada, and many residents are surprised by their bills — especially in winter. Understanding how NB Power's billing works helps you identify what's driving your costs.

NB Power Rate Structure (2025–2026)

NB Power uses an inclining block rate for residential customers:

  • First block: ~$0.1112/kWh for the first ~1,400 kWh per billing period
  • Second block: ~$0.1374/kWh for everything above 1,400 kWh
  • Monthly service charge: ~$22.47/month (fixed, regardless of usage)
This means the more electricity you use, the more expensive each additional kilowatt-hour becomes. A home using 3,000 kWh in a winter month is paying the higher rate on nearly half their consumption.

Average NB Electricity Bills

| Season | Typical Monthly kWh | Approximate Cost |
|--------|--------------------|---------|
| Summer (no electric heat) | 600–1,000 kWh | $90–$135 |
| Shoulder (spring/fall) | 1,000–2,000 kWh | $135–$255 |
| Winter (electric heat) | 2,500–5,000+ kWh | $305–$650+ |

Homes with electric baseboard heating — still the most common heating type in NB — see dramatic winter bill increases because electric resistance heating is the least efficient way to heat.

Top Electricity Consumers in a Typical NB Home

  • Electric baseboard heaters: 40–70% of total consumption in winter. A single 1,500W baseboard running 12 hours/day uses ~540 kWh/month ($60–$75/month just for ONE heater). Most homes have 6–12 baseboards.
  • Electric hot water tank: 300–500 kWh/month ($35–$60/month). This is the second-largest consumer year-round.
  • Electric dryer: 50–100 kWh/month ($6–$14/month) depending on usage.
  • Refrigerator/freezer: 30–60 kWh/month each ($4–$8/month). Older models use significantly more.
  • Dehumidifier: 40–80 kWh/month if running continuously in a damp basement.
  • Pool pump, hot tub, EV charger: 200–700 kWh/month each if applicable.
  • Why Your Bill Might Be Unusually High

    Poorly insulated home: Many older NB homes — especially those in Moncton, Saint John, and rural areas built before 1980 — have minimal insulation. Heat escapes through walls, attics, and windows, forcing electric heaters to run constantly. Adding attic insulation from R-20 to R-60 can reduce heating consumption by 20–30%.

    Drafty windows and doors: Single-pane or older double-pane windows lose heat rapidly. Storm windows or replacement windows with low-E glass make a noticeable difference.

    Thermostat habits: Every degree above 20°C increases heating cost by roughly 3–5%. Lowering thermostats to 17°C when sleeping or away saves $150–$400/year in a typical all-electric NB home.

    Phantom loads: Electronics, chargers, and standby devices draw power 24/7. A home with a lot of electronics can waste 50–100 kWh/month ($6–$14) on phantom loads alone.

    Malfunctioning equipment: A hot water tank with a failing element runs continuously. An old fridge with worn seals cycles too often. A baseboard heater with a stuck thermostat runs at full power regardless of room temperature.

    What You Can Do

    Free and low-cost:

    • Lower thermostats 2–3°C (especially overnight and when away)

    • Use programmable or smart thermostats ($100–$250 per zone)

    • Seal drafts around windows, doors, and electrical outlets with weatherstripping and foam gaskets ($20–$50 in materials)

    • Switch to LED bulbs throughout the house (saves 50–100 kWh/year per bulb replaced)


    Moderate investment:
    • Add attic insulation ($1,500–$3,500 for a typical home)

    • Install a heat pump ($3,500–$7,000 after NB Power rebates) — reduces heating electricity by 50–60%

    • Replace electric hot water tank with a heat pump water heater ($2,000–$3,500 installed, saves $300–$500/year)

    • Upgrade to Energy Star appliances as old ones fail


    NB Power programs:
    • Total Home Energy Savings Program — rebates for insulation, heat pumps, and other efficiency upgrades. Check NB Power's website for current offerings.

    • Home Energy Assessment — NB Power partners offer assessments that identify your biggest efficiency opportunities. Cost is typically $100–$300, often partially rebated.


    Reading Your Bill

    Your NB Power bill shows your daily consumption in kWh. Compare month-to-month and year-over-year to spot trends. A sudden jump without explanation (no new appliances, similar weather) suggests a malfunctioning appliance or wiring issue. An electrician can use a clamp meter on individual circuits to identify which circuit is drawing excessive power.

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