Winnipeg- Manitoba electricity rates are set to increase starting tomorrow, January 1, 2026, as the Public Utilities Board (PUB) has approved a 4% hike to address the severe financial strain on Manitoba Hydro. Although the Crown corporation originally requested a 3.5% increase, the regulator authorized the maximum allowable rate to mitigate a crisis triggered by the worst drought conditions in over a century. Water inflows into the utility’s watershed have plummeted to the second-lowest level in 112 years, leading to a projected net loss of approximately $409 million for the current fiscal year-a significant $625 million deterioration from earlier financial forecasts.
The rate hike is expected to add between $50 and $96 to the annual electricity bill of an average household. Manitoba Hydro officials emphasized that the adjustment is vital not only to stabilize its immediate finances but also to fund a massive $31 billion investment required over the next two decades to modernize aging infrastructure and prevent energy shortages during peak winter months. While the provincial government defended the move as a necessary step for the utility’s long-term health, opposition critics argued that previous government-mandated rate freezes contributed to the current debt levels. Despite the increase, officials noted that Manitoba’s electricity rates are expected to remain among the most affordable in North America.
