Fortis’ Residential Conservation Rate Report was released on November 1.
The BC Utilities Commission stepped up the time frame for the report following a large public backlash against the two tiered billing system, which appeared to cause rates amongst low income and electricity dependent customers to skyrocket, especially during the past winter.
Fortis’ report delivered little in the way of new or startling news, basically confirming what the utility predicted would be the result of the two tiered system - that approximately 71 per cent of customers would pay about the same or less under the residential conservation rate as compared to a flat rate, and customers with electric heat and those without access to natural gas were more likely to be negatively impacted.
The report also noted that many residents did not understand the effect the residential conservation rate (RCS) had on their bill, mistaking high consumption and annual rate increases for the RCS.
As a revenue neutral exercise, it was also pointed out that any change to the existing rate structure to modify the rate for one group of users would result in higher costs for another.
Fortis also noted that some users are benefitting from a break in hydro costs without actually having done anything to conserve their energy useage.
So, what is next for the utility and the BC Utility Commission as they attempt to come to terms with this issue?
It appears to us that at least part of the issue involves the different energy needs of urban versus rural customers. It appears to us most of the issues surrounding the two tiered rate in the Similkameen involve larger, lower income households who have limited choice when it comes to energy. This is a vulnerable group that has few options open to them ; in our view, a solution to energy rates should do its best to answer this issue, if an attempt to solve the problem is to be effective.