NB Power is encouraging its customers to take advantage of efficiency programs to lower electricity costs in the face of proposed rate hikes.

Increases requested by the utility average 2.5 per cent, but the highest increase, at 2.9 per cent increase, is proposed for residential customers.

This would add $5 a month for the average household.

NB Power's CEO Gaëtan Thomas said rising fuel costs have given the utility "no choice" but to increase the cost of electricity.

"We have to raise them to be a break-even operation," Thomas said.

The request for new rate increases comes only six months after the Energy and Utilities Board approved raising the residential rate by almost one per cent and commercial and institutional rates by 0.4 per cent.

"We know every rate increase is difficult for our customers, and we will help them," Thomas said.

For those struggling to pay power bills, he pointed to NB Power's efficiency programs.

"I think we've got to start looking at how we can insulate the homes better," he said. "There are ways to access programs if you are low income, there's an application process to even get free help through Social Development through NB Power."

Thomas said low-income earners can even get some renovations done free of cost through utility programs.

NB Power plans to spend an additional $40 million on such cost-reduction programs over the next three years, he said.

"For every dollar we invest in the conservation energy program, it's worth two dollars back over time for our customers and the utility," Thomas said.

"We are doing every kind of effort possible to help customers reduce their power bill."

If customers take advantage of NB Power's programs for low-income earners, Thomas said, they can save up to eight per cent on their power bills, absorbing more than the cost of the proposed increase.

Thomas also said the utility will not be "doing any excessive [salary] increase."

NB Power is also attacking the problem of power interruptions, using an "aggressive tree-trimming program."

"When we continue to cut trees, we actually reduced the number of interruptions compared to previous storms," Thomas said.

Thomas says NB Power's tree-trimming program has improved service to customers and reduced power interruptions in storms. (CBC)

He pointed to the smart meter campaign as a way for customers to save money in the future.

"It will be costlier for our customers over time to continue with analog meters because they will be less available in the future and more costly."