VICTORIA (NEWS 1130) – BC Hydro rates are going up more than eight per cent over the next five years, but B.C. Energy Minister says it could have been worse.

Michelle Mungall says a review of hydro’s operations and books found a way to cut rate increases projected by the former Liberal government by 40 per cent, if the utility commission approves the request.

“We have looked in every corner to find every penny that we can pinch, we have found that and we’re able to reduce that rate increase by 40 per cent,” Mungall adds.

RELATED: BC Hydro paid billions for power it didn’t need at urging of former government, report claims



But this is still going to cost taxpayers.

“We are able to do this because we accepted a recommendation from the review to stop using the rate smoothing regulating account and write off its balance to zero,” she says. “This will relieve ratepayers of the burden of paying off $1.1 billion in deferred costs over the next five years.”

To prevent that kind of deferment happening again, Mungall says they will undo changes the previous government made that essentially tied the utility commission’s hands from setting rates that cover hydro’s actual costs.

The announcement comes after a report commissioned by the NDP government says BC Hydro customers will pay $16 billion over the next two decades because the Crown utility was pressured by the former Liberal government to sign contracts with independent power producers.

“Unfortunately, ratepayers, the average household is seeing a $200 increase t their Hydro bills as a result of the BC Liberals IPP scheme, and that’s very unfortunate,” Mungall adds. “So that’s one of the reasons why we’re very driven to find reductions in those rate increases that were projected by the BC Liberals.”

Details on the rates and write off here… #bcpoli pic.twitter.com/43PkOUQjqI — LizaYuzda (@LizaYuzda) February 14, 2019

The report says the Liberals manufactured an urgent need for electricity but restricted BC Hydro from producing it, forcing the utility to turn to private producers and sign long-term contracts at inflated prices.

“We were still committed, however, to ensuring that we would be able to reduce those overall rate increases to British Columbians and that’s exactly what the work of this Phase 1 review has been about,” Mungall adds.

BC Greens leader Andrew Weaver is applauding the move, saying the NDP deserves “significant credit” for the steps they’ve taken to address the politicization of BC Hydro by the previous government.

But he says it’s time to look into the future, noting there needs to be a serious conversation.

“The future is no longer big dams; it’s time our utility evolved,” Weaver wrote in a statement.

The first increase of 1.8 per cent is scheduled for this April.