After years of rate hikes, the B.C. government is taking action to keep BC Hydro's electricity rates affordable for customers by cutting costs and developing new revenue streams at the Crown corporation.
These actions come after news that the previous government pushed through contracts with independent power producers, beginning in the early 2000s, that will cost BC Hydro customers $16 billion over 20 years.
In addition, the exponential growth of BC Hydro's deferred debt shows that the old government continually passed BC Hydro's financial problems on to future generations.
"The previous government made choices that put their own interests ahead of what's best for the province and BC Hydro customers," said Michelle Mungall, Minister of Energy, Mines and Petroleum Resources. "They ignored the professional advice, they ignored the auditor general, and they ignored the growing debt - and instead chose to make British Columbians pay the price for their choices, today and for decades to come."
"Following this review, it's our government's job to fix what's broken, put BC Hydro onto a sustainable path and make sure rates stay as affordable as possible for customers."
Mungall adds that part of making sure Hydro works better for customers is to have the government expand its oversight of the corporation by the BC Utilities Commission (BCUC).
"Step one in fixing this problem is to take the politics out of decisions around BC Hydro - the problems we're seeing today are the result of 16 years of political choices by the previous government. The best way to keep BC Hydro on the right financial path, while protecting the interests of customers is to enhance BCUC's independent oversight of the Crown corporation as we move forward."
Subject to BCUC approval, electricity bills forecast an increase of 1.8% as of April 1st, and 0.7% the following year. This is part of a cumulative rate increase of 8.1% over the next five years, which is almost 40% lower than the 13.7% increase for the same period under the previous government.
In addition, BC Hydro will implement a number of measures that will lower costs and increase revenues, including managing future energy purchases from private power producers. To learn all about the plan for BC Hydro, click here.
