The Nunavut Energy Centre will close down on March 31, while the work it did in energy conservation will be picked up by territorial government departments.
Qulliq Energy Corp. launched the energy centre in 2005 to run energy conservation programs in Nunavut, including a program to hand out compact fluorescent light bulbs.
The energy centre was set up to run on federal funding, but it was hurt by cuts to federal energy conservation programs in 2006, said Bruce Rigby, Qulliq Energy's acting president.
"The governments have changed, programs have changed, and those monies really aren't available like they used to be," Rigby told CBC News.
Rigby said the Nunavut Energy Centre has cost Qulliq more than $500,000 a year to operate, with ratepayers covering most of those costs.
The centre's bills and contracts will be split among government departments once the centre closes, said Hunter Tootoo, the minister responsible for Qulliq Energy.
"There are now departments and agencies of the Government of Nunavut that are offering energy conservation programs and services," Tootoo said.
Those departments and agencies include the Executive and Intergovernmental Affairs Department and the Nunavut Housing Corp., Tootoo said.
Rigby said closing down the Nunavut Energy Centre is part of a broad "full-function review" of the utility.
"Basically, the core business of the energy corporation is delivering energy," Rigby said.
"Energy conservation is very important to us and that, but where should the resources of the corporation be devoted? We would rather position the corporation to focus more on its core business."
Last week, Qulliq announced it is delaying its plans by several years to build a hydroelectric dam near Iqaluit.
The utility will have a new president, Peter Mackey, take over on April 1.