Hydro rate freeze wasn't the solution low-income customers need, says B.C. advocacy lawyer
Lawyer says lifeline rate and emergency grant programs will help more
A B.C. lawyer advocating for low-income citizens says new government programs meant to help people struggling to pay their BC Hydro bills are far more beneficial than a rate freeze would have been.
On Thursday, the B.C. Utilities Commission (BCUC) rejected a request by the provincial government to freeze BC Hydro rates for the coming year, which means a three-per-cent rate increase comes into effect April 1, 2018.
In an effort to deliver on an NDP campaign promise to freeze electricity rates, provincial Energy Minister Michelle Mungall directed BC Hydro to submit the freeze request. But the BCUC found there was "insufficient regulatory justification to approve the zero-per-cent rate increase."
Despite the rate increase's obvious initial cost to low-income customers, Sarah Khan, a staff lawyer with the B.C. Public Interest Advocacy Centre, says the alternative government initiatives to help customers are actually better.
Lifeline rates
"I'm feeling quite happy about the commission's decision to reject the rate freeze, and even happier about the government's decision to implement lifeline rates," said Khan.
To help reduce electricity costs for residential BC Hydro customers, the government says it will legislate a "lifeline rate" program, allowing people with "demonstrated need" to apply for a lower rate for electricity.
Also, starting in May, Mungall said the government will provide an emergency grant of $600 for customers who have an outstanding hydro bill.
Both of those programs were previously proposed to the BCUC by the B.C. Public Interest Advocacy Centre.
Khan said the advocacy centre had also "reluctantly" decided to support the rate freeze application when it was first proposed, but had reservations because experts at the centre thought discounted rates for low-income customers was a better solution to the electricity affordability issue.
"We felt the more appropriate response would be for BC Hydro to implement discounted electricity rates for low-income rate payers," said Khan.
She said a rate freeze across the board would include customers who are more than able to pay the current rates and wouldn't be as helpful to those struggling to pay the bills.
With files from B.C. Almanac