This news release has been updated with a Quick Fact to confirm the Affordability Rate Relief program is in addition to the existing Winter Energy Affordability Rebate
The new Government of Yukon has begun work with the Yukon Development Corporation and the Yukon Energy Corporation to develop a long-term, sustainable solution to deliver affordable, reliable energy to Yukoners by reducing the proposed 34 per cent increase to power rates. This work is a priority for the new government and will take some time to complete.
The upcoming January 1, 2026, rate increase was previously approved by the Yukon Utility Board in June 2025 as part of the 34 per cent rate application. While the work required to disentangle the new government from the rate increase is underway, the new government is proposing an immediate interim measure to shelter Yukoners from the January rate increase.
As an interim solution to shelter Yukoners from immediate pressures, the Affordability Rate Relief Program, included in the Supplementary Estimates, will offset the 10 per cent rate increase on the first 1,000 kWh per month from January 1 to March 31, 2026.
The previously announced and approved energy rate hikes are driven by significant infrastructure pressures on the Yukon Energy Corporation for critical repairs and maintenance on existing facilities and on projects that were previously approved and have gone over budget, such as the Battery Energy Storage System.
The new government also recognizes the substantial costs required to rectify the deteriorating condition of the Wareham Dam Spillway, which is currently expected to cost over $150 million. While the plan to address the Spillway that was announced last week will not impact this current proposed rate hike, it will prevent those expenditures from being put on the backs of ratepayers in the future.
Yukoners have been clear; they cannot afford the proposed 34 per cent increase brought forward by the previous government. That’s why we have begun work to come up with solutions to reduce this increase and restore affordability for families. While we do this work, we are proposing the Affordability Rate Relief program as an interim solution.
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The Affordability Rate Relief program will be applied in addition to the existing Winter Energy Affordability Rebate (WEAR). Residential customers will see up to $60.51 in electricity assistance between the two programs on their January, February and March 2026 bills.
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Funding included as part of Budget 2025–26 Supplementary Estimates No. 1 is subject to legislative approval.
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The Yukon Energy Corporation submitted a general rate application to the Yukon Utilities Board on May 12, 2025.
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In June 2025, the Yukon Utilities Board approved an interim refundable rate rider increase to address the Yukon Energy Corporation’s annual revenue shortfalls, as identified in the 2025–27 General Rate Application.
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The first increase of 10 per cent took effect July 1, 2025, and the next 10 per cent increase is set to take effect on January 1, 2026.
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The Government of Yukon will provide affordability rate relief of 2.67 cents per kilowatt hour (kWh) to a maximum of 1,000 kWh each month.
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The relief will apply to all non-government residential customers and appear directly on their January, February and March 2026 bills.
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The program offsets the 10 per cent January electricity rate increase for residents on the first 1,000 kWh of electricity usage per month.
Tim Kucharuk
Cabinet Communications
867-335-2419
[email protected]
Andrew Anderson
Communications, Yukon Development Corporation
867-332-0138
[email protected]