A process is getting underway this fall to review the structure of rates that FortisBC charges customers for electricity.
Most of us just pay our bills every two months and grumble that the price always seems to be increasing.
But for those who live in rural areas with no access to natural gas, the way that rates are structured is a major concern.
Residents of the Anarchist Mountain community have been the most vocal on the issue, but many other rural residents throughout the FortisBC coverage area are similarly affected.
FortisBC last week held a public information session in Osoyoos, just as they’ve held similar sessions in Kelowna and Castlegar.
According to FortisBC, “Our goal right now is to consult and provide people with information. We believe that collaboration is key to finding an option that is reasonable and mutually beneficial. We will continue to solicit feedback from the public until the end of September.”
FortisBC insists that all nine options that have been proposed to them in consultations “are still being considered” and will be analyzed in the context of a set of “guiding principles.”
Anarchist Mountain and other rural residents, however, have become cynical in the three years they’ve been fighting against two-tier rates, which they argue force them to subsidize other electricity users.
Rightly or wrongly, they see FortisBC as going through the process of consultations to satisfy the regulator, the British Columbia Utilities Commission (BCUC), while all the time knowing the outcome they want – a continuation of the “unfair” two-tier rate structure.
And, although the BCUC has recently said the right things about encouraging electricity consumers to become involved in the process, the perception remains that the BCUC has in the past been too willing to rubber stamp whatever the utilities – FortisBC and BC Hydro – ask for.
The former B.C. Liberal government was careful to take a hands-off approach, no doubt in part because they wanted to stay above the fray. When it comes to electricity rates, you’ll never make everyone happy.
It’s true that government shouldn’t try to micromanage the regulatory process, but government does have an obligation to set broad objectives.
Hopefully the new provincial government will articulate its objectives, which could include achieving energy efficiency, consideration of the environment and pricing fairness.
If the stated objective of the previous government was energy conservation, it’s clear that the two-tier system only works for those customers who have viable alternatives.
It appears that a primary concern for the utilities has been ensuring that a majority of customers sees smaller rate increases – with less regard for whether the minority is treated fairly.
While we don’t agree with those Anarchist Mountain residents who argue for a return to flat rates across the board, we support the position – recently articulated by MLA Linda Larson – that there should be special consideration made for those without access to natural gas and those with low incomes.
FortisBC has been quick to say a special rate for those without gas would be “administratively cumbersome” and is “not a recommended option” – conveniently ignoring the fact that they also have a natural gas monopoly.
Nor do we sense that FortisBC is enthusiastic about allowing customers to switch to optional time-of-use billing, which would encourage electricity use in off-peak hours.
That’s not a panacea for customers requiring electric heat, but we suspect it would be a far more effective way to manage consumption than the current system.
The important thing is for the public’s voice to be heard and for people to organize as informed interveners.
Otherwise, the new rate system will merely reflect the interests of the utility monopolies, rubber stamped by the BCUC. And we’ll all be left just to pay our bills and grumble.
