Nova Scotia Power has reached an agreement in principle with stakeholders that will see power rates in the province rise 6% over the next two years.

If approved, rates will rise 3% effective January 2013, followed by another 3% the following year.

N.S. Consumer Advocate John Merrick says the utility was initially looking to collect an extra $200-million from consumers. He says that would have translated to a gradual 8% increase, but instead settled on 6% over two years with no further increases.

“What we were able to do in this negotiated settlement, was bring the total rate increase down by (more than) $30-million,” Merrick says. “We were of the view, having looked at all the evidence, that a negotiated settlement in that amount would probably be a better result for (stakeholders) than if we were to leave it to the board to have to decide it based on the evidence that was filed.”

The province’s energy critic isn’t satisfied.

“I don’t think this deal is any better for Nova Scotians at the end of the day,” says Liberal Energy Critic Andrew Younger. “If Nova Scotia Power is able to find almost $30-million in savings all of a sudden, why couldn’t they find those savings before? We still think Nova Scotians are paying too much for power and at the end of the day they’ll still be paying far more than the cost of inflation”

The rates still need to be approved by the province’s Utility and Review Board. The hearing will resume Tuesday morning.