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B.C. inflation increase driven by Hydro rate hike; time to reconsider rate increase says watchdog group
Vancouver, BC - Already, the BC economy is feeling the pinch of electricity rate hikes and it's time to reconsider BC Hydro rate increases b efore it is too late, says BC Citizens for Public Power in reaction from today's news from Statistics Canada that BC inflation increases are being driven by electricity prices.
Vancouver, BC - Already, the BC economy is feeling the pinch of electricity rate hikes and it's time to reconsider BC Hydro rate increases b efore it is too late, says BC Citizens for Public Power in reaction from today's news from Statistics Canada that BC inflation increases are being driven by electricity prices.
"Electricity is used in everything we produce and sell in this province. When you increase electricity costs by $229 million, the price of everything is going to rise," said Mark Veerkamp, executive director for the BC Citizens for Public Power.
"We think these rate increases are unnecessary and given the bad news from Stats Canada, they should be reconsidered," said Veerkamp.
"Even a small jump has its effects. If the BC Liberal government continues with plans to purchase all new power from private sources, we are will see rates continue to rise and inflation will rise with it."
Veerkamp notes that BC Hydro has identified private energy purchases as a major driver for rate increases of 8.9% which are being currently reviewed by the BC Utilities Commission.
The BC government has directed BC Hydro to purchase power from private energy source and is banning BC Hydro from building any new power plants.
In fiscal year 2003, private power purchases cost ten times what it cost for BC Hydro to produce its own power. Over the past ten years, private electricity prices have increased 77% while BC Hydro prices have increased only a fraction of one percent.
In addition, the break-up of BC Hydro and the creation of the new BC Transmission Company (BCTC) is costing consumers $20 million in one-time costs and almost $18 million a year in annual cost increases to provide the same transmission service.
"The government is making bad decisions that are hurting consumer and the economy," said Veerkamp. "It's time to take a step back b efore it is too late."
The Statistics Canada study can be found under The Daily at: http://www.statcan.ca/Daily/English/040520/d040520a.htm