FortisBC phasing out controversial two-tiered electricity billing by 2023
Posted February 28, 2019 8:03 pm.
Last Updated March 1, 2019 12:34 pm.
This article is more than 5 years old.
KELOWNA (NEWS 1130) — FortisBC electricity customers are gradually going to be seeing new changes to their bills.
The natural gas and electricity provider is scrapping the controversial two-tiered structure, gradually moving back a single flat rate by 2023. The changes could mean annual savings for 30 per cent of customers whose bills were hit hard by higher energy-usage, but it could also mean higher costs for those who are currently using less energy.
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The current two-tier system charges customers a higher rate when electricity usage goes over 1,600 kilowatt hours over a two-month period, in an effort to encourage people to conserve energy. The B.C. Utilities Commission has approved the changes.
Customers who were saving money by lowering power usage could see a “moderate” increase of about 3.5 per cent per year on their bills, according to the utility. Overall, the changes are revenue-neutral for FortisBC.
Diane Roy, vice-president of regulatory affairs with FortisBC, says she’s is glad they’re able to make the changes.
“During the rate design process, we heard from many residential customers with concerns about the two-tiered rate, particularly those with high energy needs and limited conservation options,” she said in press release. “A gradual return to a flat rate balances the interests of our residential customers.”
According to the utility, the phased approach is meant to make it easier on customers whose power costs will be going up.
“Helping customers reduce their bills remains a priority for FortisBC,” Roy says. “We continue to enhance our energy saving programs, especially those that support customers on the tightest budgets, and we encourage all customers to contact us if they need help.”
– With files from Marcella Bernardo
