Manitobans can blame a warm winter for a rate increase in their electricity bills.

The Public Utilities Board approved an interim two per cent rate hike for all Manitoba Hydro customers over the weekend. The increase kicked in on Sunday.

Hydro spokesman Glenn Schneider said the public utility needed the increase to balance the books and had actually applied for a 3½ per cent boost.

"Our financial situation is not healthy," Schneider told CBC News on Monday.

"I think that's become widely known that we're being affected by the warm winter, which has affected our revenues from energy use from our domestic customers."

Warmer than normal temperatures during the winter and spring meant less people cranking up the heat.

Similarly, the mild weather in other places impacted Manitoba Hydro's power exports.

Hydro says without such increases, the utility would likely post losses of $51 million in 2012/13 and $58 million in 2013/14.

With files from The Canadian Press