VANCOUVER, Nov. 28, 2013 /CNW/ - The BC Sustainable Energy Association
(BCSEA) said today that BC Hydro's rate increases aren't high enough to
cover the cost of providing electricity to customers.
In response to Energy Minister Bennett's statement yesterday regarding
an artificial cap on electricity rate increases, BCSEA's Policy
Director Tom Hackney said, "Setting rates that are below the true cost
of our electrical energy simply shifts today's expenses into
interest-accruing 'deferral accounts' that will have to be paid back by
even higher rate increases in the future."
BCSEA maintains that electricity prices should cover the actual cost of
the service so that there is a genuine incentive for customers of all
types to cut back on unnecessary energy use and to invest in energy
"This is the second time the government has ordered BC Hydro to push
current costs into deferral accounts instead of recovering current
costs from ratepayers," said Bill Andrews, legal counsel for BCSEA at
the BC Utilities Commission (BCUC), referring to the government's
cancellation of BCUC's oral hearing into BC Hydro's rates.
BCSEA also expressed concern that the minister's announcement included
approval of BC Hydro's in-house cost estimate for the Site C Project on
the Peace River. BCSEA had called on the government to send the cost of
Site C to BCUC for an independent second opinion. "BC Hydro claims Site
C can be completed for $7.9 billion. However, this can't be properly
compared with alternatives like wind and small hydro power unless the
cost is rigorously scrutinized," said Hackney.
BCSEA is an active intervenor in BCUC proceedings and in government
energy policy reviews.
SOURCE: BC Sustainable Energy Association
For further information:
Media Contact: Tom Hackney, BCSEA Policy Director, 250-381-4463