Nova Scotia business and community groups told the provincial government Tuesday that a proposed double-digit electricity rate hike by Nova Scotia Power is unacceptable.

A number of groups met with Energy Minister Bill Estabrooks Tuesday to outline their concerns about the proposed increase that would take effect Jan. 1.

"Anything we can do to mitigate any rate hike would be very helpful," Valerie Payn, president of the Halifax Chamber of Commerce, said.

NSP wants to hike residential rates by as much as 12 per cent, and by 18 per cent for businesses. It says it needs the increase to offset the costs of burning cleaner coal at its power generating plants.

Robert Patzel, of the Canadian Manufacturers and Exporters Nova Scotia division, said such a massive increase could have dire consequences.

"You're on the edge of affecting the competitiveness, and hence the tax base of Nova Scotia," he said.

Fiona Traynor, of the Affordable Energy Coalition, said low-income families won't be able to handle such a huge hike in power rates.

"If they are raised by 12 per cent, you know, people will have to make more drastic decisions about whether they feed their children or pay their power bills," she said.

Estabrooks said he got the message.

"I gathered some good information as we look forward to a tough decision that we are going to make," he said.

But he would not say whether the province will continue to take the environmental measures that are being blamed for the proposed rate hike.

"I will not give you a yes or no to that because, first of all, I am a cabinet minister and I'm not representing what decision my colleagues would make in a decision of that nature," Estabrooks said.

Liberal Leader Stephen McNeil said the environmental standards must stay.

"This province has to come to terms with the fact that it cannot continue to produce energy by dirty coal at the rate we are," he said.

The Nova Scotia Utility and Review Board will hold a hearing in October and make the final decision on whether the January 2011 increase will be allowed.