Using a heat pump or electric vehicle in B.C.? You might want to change how you get charged for power use

People who use electric heating or charge electric vehicles at home have a new way to save money on their monthly bills, according to B.C. Hydro.

Customers can now apply to pay a flat rate for all of their electricity use, rather than the current default of paying less for lower electricity consumption and more when usage increases.

The new system is meant to benefit households with higher electricity costs, such as those that have baseboard heating, heat pumps, multiple families in a single home, or electric vehicle charging. Those households can expect an average annual savings of an estimated $60 a year, the power provider said.

It also said the new, optional rate along with previously-introduced time-of-day pricing should reduce the barrier to people switching over to electric vehicles or electric heating.

How electricity pricing works

Power consumption, and electrical bills, are calculated using kilowatt-hours (kWh), the most common billing unit for energy delivered to consumers.

To calculate kilowatt-hours, take the wattage of any household appliance, multiply that by how many hours you think it's used and divide that by 1,000.

So if you use a 100-watt light bulb for 10 hours, you've used 1 kWh of electricity. 

How does it apply to B.C. Hydro billing?

Currently, B.C. Hydro charges customers 11.72 cents per kWh for the first 675 kWh used in an average 30-day billing period.

If the 675 kWh threshold is passed, all additional electricity usage is charged at a rate of 14.08 cents kWh.

So, leaving that light bulb on for 10 hours costs 11.72 cents until you pass the threshold, at which point it will cost 14.08 cents.

Under the flat rate system all electricity, regardless of how much is used, would cost 12.63 cents per kWh.

Customers can also add an optional time-of-day pricing, which adds a five cent per kWh discount to electricity used during off-peak hours (11 p.m. to 7 a.m. local time) and a five cents per kWh surcharge during peak hours (4 p.m. to 9 p.m. local time).

How to sign up

B.C. Hydro is offering an online tool that analyzes past electricity usage and calculates your costs under the new plan on their website. Those who wish to do so can also opt in to the time-of-day pricing rate online by logging in to their B.C. Hydro account.

The new plan is only available to residential customers who have their own electric system and is not recommended for customers in apartment or condo buildings.

More information about the plan and eligibility can be found on the B.C. Hydro website.