BC Hydro 2-tier rates up for review, premier says

B.C. Premier John Horgansays the government will addressthe much-criticized two-tier billing system for residential electricity customerswith top BC Hydro officials in January.

Horgansaid he's been critical of the way the previous Liberal government introduced the graduated rates in 2008 as a way to reduce energy consumption.

"For many people, aconversion to electricity was encouraged by previousgovernments: Get rid of your wood stove, convert to electric and you'll get a better deal," he told the weekly reporters' scrum at the B.C. Legislature. "Now of course those very same citizensare seeing their rates go through the roof."

The premier's remarks acknowledgethetwo-tier billing debate was not settled bya B.C. Utilities Commissionreport earlier this year that concluded itdoesn't leave most low-income hydro customers worse off.

On Oct. 27, B.C. Energy Minister Michelle Mungalltold On the Island host GregorCraigiethat two new reviews by the B.C. Utilities Commission launchinNovember to review the rate plans for Crown Corporation BC Hydro and natural gas distributorFortisBC.

Mungallsaid citizens are encouraged to share their views on the electrical and gas rate structurein those reviews.

Mungallacknowledged that electricity users sometimes pay more than those who heat their homes with gas or oil.

ButMungallsaid there is "no evidence" that people switchto fossil fuel heating systemsin an effort to save money.

"A lot of these issues are tied to how a home is insulated,"Mungallsaid.

Meanwhile, Green Party Leader Andrew Weaver is calling for elimination of the two-tier plan, which, he said, leads to families getting "hammered" with high bills, while someone living solo in a high-end home pays the lower rate.

"Unfortunately, in my view, it's doing exactly what it's not supposed to be doing," Weaver said."It's disincentivizing the use of electricity over the use of fossil fuels."

Weavernoted FortisBCuses cost comparisons of gas and electric home heating coststo sellhomeowners on switching to natural gas, which it says is one-third the coston Vancouver Island.

Horgan said he doesn't oppose the idea of structuring electricity rates toreduce consumption.

"But if the consequence is that every month everyone's paying more, everyone's going through that first tier, I think we need to take a look at it."

With files from CBC Radio One's On the Island