CANADA, March 17 - In response to the economic and trade uncertainty faced by people and businesses across British Columbia , the Province is taking action to provide stability in BC Hydro’s electricity rates during these unpredictable times, while keeping rate increases below cumulative inflation.
“We must take urgent action to protect British Columbians from the uncertainty posed by rising costs while building a strong, robust and resilient electricity system for the benefit of B.C.’s long-term energy independence,” said Adrian Dix, Minister of Energy and Climate Solutions. “That is why we are submitting a rate stability direction to the B.C. Utilities Commission to set BC Hydro’s rate increases for the next two years. This move guarantees certainty and reaffirms our commitment to keeping electricity rates well below the North American average and cumulative inflation, while growing our clean-energy advantage.”
BC Hydro has among the lowest electricity rates in North America. The rate stability direction to the B.C. Utilities Commission (BCUC) will help maintain that advantage by setting BC Hydro’s annual average rate increase at 3.75% for the next two years. For the average residential household, which currently pays approximately $100 a month, this equates to an additional $3.75 per month.
BC Hydro rate changes are staying below cumulative inflation, keeping electricity costs near the lowest in North America and about half what Albertans pay. These rate changes ensure BC Hydro can continue to build the critical local and provincial renewable energy infrastructure and supply needed to bolster B.C.’s economy, while maintaining rate increases below cumulative inflation for seven consecutive years. BC Hydro’s cumulative rate increases between 2017-18 and 2026-27 will be 12.4% below cumulative inflation.
“The rate stability direction from the Province will provide customers and growing industries with the certainty they need during these times, while ensuring our rates remain affordable,” said Chris O’Riley, president and CEO, BC Hydro. “The rate adjustment will go toward supporting critical investments in our system that will ensure we maintain our status as a leader in renewable energy, encouraging overall economic growth and job creation.”
The rate adjustments for the upcoming two years reflect rising operating costs due to inflation, the needed Site C hydroelectric project coming into service, and the critical work required to significantly invest in B.C.’s energy supply and infrastructure to bolster B.C.’s economy and energy security.
BC Hydro is taking a number of actions to meet the growing demand from population growth and housing construction, business and industrial development, and transportation. These actions will power more than one million new homes. This includes:
- adding the Site C hydroelectric project, which will power 500,000 homes and boost supply by 8%;
- adding 10 new renewable energy projects through the 2024 call for power, which will power 500,000 homes and increase supply by a further 8%; and
- investing in energy efficiency, which is expected to result in 2,000 gigawatt hours per year of electricity savings or enough to power 200,000 homes.
BC Hydro is also investing $36 billion through its 10-year capital plan to expand and strengthen community and regional electrical infrastructure, and to ensure power can be delivered to new homes, businesses and industries. These investments will create economic opportunities throughout the province, including approximately 10,000 jobs for skilled workers, and generate economic growth for First Nations and communities in B.C.
In addition to the rate stability direction, government is providing support to people in British Columbia who are vulnerable or in crisis, a top priority during uncertain times. A key resource for supporting customers is BC Hydro’s Customer Crisis Fund, which offers grants for those in temporary financial crisis. Government has taken action to ensure an additional $1.9 million will be added to the fund, which is expected to help approximately 4,700 households between now and April 2026.
For customers not eligible for the Customer Crisis Fund, BC Hydro offers equal payment plans that spread out the cost of winter bills, and flexible payment plans. Low-income conservation programs also offer income-qualified customers the opportunity to save energy and money. These programs have delivered approximately $6 million in annual electricity cost savings to customers over the past four fiscal years. BC Hydro has also expanded its rate options for residential customers, offering more billing choices and new opportunities to save money, including optional time-of-day pricing and an optional flat rate, which will be introduced on April 1, 2025.
BC Hydro has filed the two-year rate adjustment publicly with the BCUC, along with supporting information. The rate increases will take effect April 1, 2025, and April 1, 2026.
Through the rate stability direction and other actions, the B.C. government is working to bring down costs for families, strengthen health care, make communities safer, help people find a home they can afford in a community they love, and grow a stronger economy that works for everyone.
Quick Facts:
- BC Hydro’s residential, commercial and industrial rates are the third lowest in North America (among 22 utilities surveyed in Hydro Quebec’s 2024 Rates Comparison Report).
- Adjusting for inflation, electricity in B.C. costs the same today as it did more than 40 years ago.
Learn More:
For more information about BC Hydro’s electricity rates, visit: http://news.gov.bc.ca/files/BCHydroRates.pdf
To access a multi-language page that helps British Columbians find out about tax benefits and credits, how to file, how to get free support with filing, and how to register for direct deposit to get their refund and benefits sooner, visit: gov.bc.ca/TaxBenefits
To learn about other programs that are available to help with everyday costs, including a multi-language benefits connector to help find programs people may be eligible for, visit: gov.bc.ca/BCBenefitsConnector
A backgrounder follows.
