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BC  

Two-step billing not unfair

The B.C. Utilities Commission has released a report on two-step billing for electrical utilities used by FortisBC and BC Hydro.

The system, which charges an increased rate for power used above a certain level each cycle, has been roundly criticized by rural residents who do not have access to natural gas.

Many think it is unfair, and claim the high rates paid by rural residents under the system essentially subsidize lower rates for those with access to natural gas.

But a 71-page report from the BCUC released this week disagrees, and states 65.2 per cent of low-income Fortis customers are actually better off with the two-tiered billing.

The report acknowledges a “break-even point” (about 2,300 kWh per cycle on BC Hydro, 2,500 kWh for FortisBC) where two tiered billing gets more expensive for consumers, “but this does not constitute a subsidy, and neither is it unjust, unreasonable, unduly discriminatory or unduly preferential,” the report reads.

The Utilities Commission determined that even for customers without access to natural gas, the majority are better off with the two tiered billing system. However, Fortis estimated that 9.7 per cent of its customers are more than 10 per cent worse off.

The report also found that more could be done by both BC Hydro and Fortis to encourage customers to undertake power-saving behaviours, particularly for low-income customers.



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