st7860
Feb 26th, 2008, 09:12 PM
Just one week after announcing a major rate increase, BC Hydro unveiled today a new electricity pricing scheme that allows most customers to escape the full impact of the rate hike.
The new scheme sees Hydro eliminate its traditional flat rate in favor of a new two-tier pricing system that rewards energy savers - and penalizes large-volume electricity consumers in the residential sector.
In documents filed today with the B.C. Utilities Commission, Hydro proposes to split residential customers' bills into two tiers - with a lower rate for basic power requirements, and a higher rate for all electricity consumed beyond the basics.
The new pricing scheme is proposed to take effect Oct. 1.
The higher rate, for tier two power, will be priced about seven-tenths of one cent higher than tier one power.
Tier one power will cost 6.28 cents per kilowatt hour, tier two at 6.98 cents for the first year of the new system - assuming that the BCUC approves the basic rate increase application filed Feb. 20 by Hydro, and the two-tier residential pricing scheme that follows it.
For many customers, the two-part rate structure will be a non-factor. According to Hydro, 75 per cent of customers will save a bit of money under the new scheme while the other 25 per cent - who consume 45 per cent of the total residential power load - will pay more.
A high volume residential customer could see annual electricity cost rise $105 - but for those who keep within the limit of the lower-priced tier one allocation, it's less than $10 a year.
The new scheme sees Hydro eliminate its traditional flat rate in favor of a new two-tier pricing system that rewards energy savers - and penalizes large-volume electricity consumers in the residential sector.
In documents filed today with the B.C. Utilities Commission, Hydro proposes to split residential customers' bills into two tiers - with a lower rate for basic power requirements, and a higher rate for all electricity consumed beyond the basics.
The new pricing scheme is proposed to take effect Oct. 1.
The higher rate, for tier two power, will be priced about seven-tenths of one cent higher than tier one power.
Tier one power will cost 6.28 cents per kilowatt hour, tier two at 6.98 cents for the first year of the new system - assuming that the BCUC approves the basic rate increase application filed Feb. 20 by Hydro, and the two-tier residential pricing scheme that follows it.
For many customers, the two-part rate structure will be a non-factor. According to Hydro, 75 per cent of customers will save a bit of money under the new scheme while the other 25 per cent - who consume 45 per cent of the total residential power load - will pay more.
A high volume residential customer could see annual electricity cost rise $105 - but for those who keep within the limit of the lower-priced tier one allocation, it's less than $10 a year.