BCUC Issues Final Report on Fuel Retail Pilot to BC Government

VANCOUVER, BC, March 31, 2022 /CNW/ - Today, the British Columbia Utilities Commission (BCUC) issued its Final Report for the Fuel Price Transparency Act (FPT Act) retail data collection project (Retail Pilot) to the Minister of Energy, Mines and Low Carbon Innovation. The Final Report for the Retail Pilot includes the BCUC's recommendations to the British Columbia (BC) government regarding potential reporting requirements for the retail fuel industry.

From November 2020 to November 2021, the BCUC collected data from a group of retail fuel dealers across BC, as part of the Retail Pilot, in accordance with the BC government's Special Direction. The BCUC prepared its Final Report following its review of the collected data, and engagement with the public, retail and wholesale industry, and Retail Pilot participants.

The BCUC's final recommendations are based on the results of the Retail Pilot and take into account the feedback the BCUC received. They include:

BCUC Recommendations
Retail Purchase Data	Enhancing the wholesale reporting requirements in the Fuel Price Transparency Regulation to require wholesale fuel marketers to submit to the BCUC, on a monthly basis, information on the price and volume of fuel they supply to each of their retail station customers and where this fuel is sourced. Not requiring retail stations to regularly report data on their fuel purchasing activities to the BCUC.
Retail Market Characteristics	Requiring all retail dealers in the province to complete a simple survey each year on general retail station information including, among other things, pump services, site amenities, and ownership structure for each retail station under their control.
Retail Sales Data	Combining data from wholesalers (retail shipments), third-party data service providers, and other publicly available sources with data collected from retail dealers in an annual survey. Implementing a strategic and customizable approach to retail fuel data reporting, focusing on market aspects that are not explained by publicly available information. Gathering input from industry participants to ensure additional reporting requirements are consistent with common industry standards.
Who Should Report	Requiring "retail dealers" to report fuel data to the BCUC. Aligning the definition of retail dealer in any future retail regulations with the definition used in the Fuel Price Transparency Regulation for wholesale market participants. Exempting fuel types from reporting that are exempt under BC's Motor Fuel Tax Act and Carbon Tax Act. That the provincial government engage with Indigenous communities and their governments to work collaboratively on developing reporting requirements for Indigenous-owned retail stations and retail stations located on Indigenous lands. Allowing the BCUC flexibility to determine who should report if no specific exemptions or exclusions are prescribed in regulation.

The BCUC's Final Report contains background information on the Retail Pilot and BC's retail gasoline and diesel fuel market, summarizes the results of the BCUC's economic analysis of the fuel data that was collected, and presents the costs and benefits of reporting. The report also describes the fuel price transparency measures in other North American jurisdictions.

The Final Report contains confidential information, which has the potential to harm Responsible Persons and the competitiveness of the fuel market. The BCUC has provided a Supplementary Report to share its final recommendations and information about the engagement process with the public.

For more information about the Retail Pilot, please visit GasPricesBC.ca/RetailPilot.

The BCUC continues to collect fuel data from the retail and wholesale industry through our exploration projects. As part of the projects, the BCUC is collecting data about gas and diesel prices in cities across the province, gathering costs and revenues data from wholesale fuel marketers who supply BC retail stations, and monitoring retail and wholesale price margins from select retail stations across BC. To learn more about these projects, see our Special Projects page.

Background

On February 4, 2022, the BCUC issued its Draft Report on the Retail Pilot to seek public feedback on its proposed recommendations to the BC government before issuing its Final Report. In total, 30 individuals attended the BCUC's three online workshops, six people submitted letters of comment, and 975 British Columbians responsed to our public survey.

On August 14, 2020, the BC government issued a Special Direction to the BCUC, requiring the BCUC to undertake a Retail Pilot that would inform the development of regulations aimed at the retail portion of the supply chain. As Administrator of the FPT Act, the BCUC is responsible for collecting fuel data to promote market competitiveness and public confidence in the competitiveness of the fuel market.

About the BCUC

The BCUC is an independent regulatory body, responsible for regulating BC's energy utilities, as well as its compulsory automobile insurance rates, and intra-provincial pipeline rates. The BCUC is also responsible for administering BC's Fuel Price Transparency Act. It is the BCUC's role to balance the interests of customers with the interests of the businesses it regulates. The BCUC carries out fair and transparent reviews of matters within its jurisdiction and considers public input where public interest is impacted.

SOURCE British Columbia Utilities Commission

CONTACT INFORMATION: Kelsey Newsham, Communication Specialist, Communications, Phone: [phone], Email: [email protected]