Final approval has been given for the residential power rate in Newfoundland to increase by 6.4 per cent as of next Monday.

That works out to or an additional 0.8 cents per kilowatt-hour.

The rate for Labrador residents will decrease by 3.1 per cent, or a reduction of 0.1 cents per kilowatt-hour.

The Public Utilities Board has signed off on the proposal for the rate hike from Newfoundland and Labrador Hydro.

The utility has previously said the increase in price is due to an increase in fuel costs.

"Today we rely heavily on oil to generate electricity for customers at our Holyrood plant, and the forecast price of oil has increased significantly since rates last changed in 2018," said Hydro in a statement provided last week.

We share customers' concerns: Newfoundland Power

In a statement to CBC on Thursday afternoon, a spokesperson for Newfoundland Power said, "This rate increase is not related to our operations and has no financial benefit for Newfoundland Power."

"Our customers remain very concerned about future electricity rates, particularly increases related to the Muskrat Falls Project. We share their concerns."

Newfoundland Power's cost of operations has not been a factor in increasing electricity rates for 2016 to 2020, added the spokesperson.