BC Hydro's new rate structure aims to cut consumption

A two-tiered rate structure that comes into effect in October is aimed at getting British Columbians to conserve electricity, BC Hydro said Wednesday.

Under the new arrangement, users consuming 1,350 kilowatt hours or fewer every two months will be billed at one rate, while those who exceed the limit will pay a higher rate on the extra kilowatt hours, spokesman Dag Sharman said.

The B.C. Utilities Commission suggested Hydro price tier-one power at about 6.15 cents per kilowatt hour. Tier-two power would be 7.21 cents per kwh in October, jumping to 8.27 cents per kwh next April. The current flat rate is 6.55 cents per kwh. 

The utility later announced that the tier-one rate will be 5.98 cents per kwh. The tier-two rate (above 1,350 kwh) will be 7.21 cents per kwh. As of April 1, 2009, the tier-one rate will increase to 6.35 cents per kwh, and the tier-two rate will increase to 8.27 cents per kwh.

"We are aiming to conserve electricity. We want to be energy self-sufficient in B.C. by the year 2016. This is one of the things we try to do to reach that goal," Sharman said. "Under our proposal, we have calculated that it would about a $5 increase a month year over year for an average consumer."

"Our calculations are 70 per cent of the British Columbians will be better off under this new rate structure than they would be under a flat rate."