Manitoba Government Commits to Freeze Hydro Rates and Encourage Competition in Grocery Stores
Manitoba’s Premier Wab Kinew announces that his government will be introducing legislation to freeze rates at Manitoba Hydro for one year to help make life more affordable.
He also commits to removing “restrictive” contracts that hinder the construction of grocery stores in close proximity to each other.
During the election campaign, the NDP had promised to freeze hydro rates for one year starting in 2025. Kinew mentioned that the Public Utilities Board (PUB) will have the final decision, but he expressed confidence that the rates would be frozen.
“Manitoba Hydro’s purpose is to save people money. The most crucial thing is to have affordable electricity rates,” Kinew told reporters. “Transitioning to a climate-friendly economy in the future can only happen when you can afford to electrify transportation and businesses can afford to electrify their heating costs.”
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PUB also approved an additional 1.4 percent increase in electricity rates in August of that year, along with another 1.4 percent increase in April of 2024.
Grocery Store Competition
The premier mentioned that his government will also be exploring the prohibition of “restrictive covenants” to enhance competition among grocery stores and address high food prices. A restrictive covenant is a clause included in a contract to regulate how a property is utilized.
“The goal of targeting restrictive covenants is to stop major businesses from limiting competition in areas where competition could lower prices, and that’s what we aim to promote here,” Kinew stated at the press conference.
He explained that a commercial development contract in any Manitoba locality might contain a restrictive covenant that prohibits the establishment of more grocery stores in the vicinity.
“We want to prevent this scenario. We want more competition. We want grocery prices to decrease due to this competition.”
Kinew mentioned that there will be an opportunity for residents, producers, the agriculture sector, and other stakeholders to provide input during the legislative process.
Kinew’s promises in the throne speech follow the extension of his government’s gas tax cut until Dec. 31.
