FortisBC is moving away from a two-tiered rate and returning to a single, flat rate by the year 2023.
The BC Utilities Commission (BCUC) has approved FortisBC’s request to return to a single, flat rate for its residential electricity customers over a period of five years.
The two-tiered rate, also known as the residential conservation rate (RCR), was put in place in 2012 at the direction of the BCUC to encourage energy conservation, according to FortisBC.
Under the two-tiered structure, customers pay a higher rate when their use exceeds 1,600 kilowatt hours (kWh) over a two-month period.
FortisBC says returning to a flat rate provides annual savings of about 30 per cent for customers who had higher bills under the two-tiered system.
It could, however, also mean moderate bill increases for lower use customers, those who saved under the two-tiered system.
“We heard from many residential customers with concerns about the two-tiered rate, particularly those with high energy needs and limited conservation options. A gradual return to a flat rate balances the interests of our residential customers,” says Diane Roy, vice-president of regulatory affairs, FortisBC.
FortisBC solicited input from a variety of stakeholders, hosted eight public consultation sessions and responded to approximately 1,800 information requests from 13 interveners.
“We would like to thank the many people who took part in the engagement process,” said Roy, “We believe this level of participation results in the best outcomes for our customers and we appreciate everyone who contributed to this effort.”
While the BCUC approved a phased-in return to a flat residential rate and changes to FortisBC’s other rate classes, it rejected a new optional time-of-use rate for residential customers. FortisBC is continuing to review the decision and once complete, will establish a timeline for implementing the approved rate design changes.
Customers can find out more and estimate how the return to a flat rate will affect their annual electricity costs by visiting fortisbc.com/flatrate or calling 1-866-436-7847.
Thomas wheeler says
2 tier was a stupid way to treat all customers!!!
Dave Colwell says
Of course THIS is not fair for those of us who use minimal Hydro, who have replaced all light bulbs from incandescent to LED, who use alternate supplementing energy sources etc. Yes we will have to pay more to support the indiscriminate squanders of energy. The richer larger property owners win out again. SHAME!
Dave Colwell says
As a follow up to my last post on this, apparently this issue has nothing to do with Squamish , since Squamish is served by BC Hydro. Still not fair, nevertheless, for those involved with this change in other parts of the Province. I do not doubt that this might happen with BC Hydro too for us.