B.C. Hydro customers face annual 3.75% rate increase for next 2 years

B.C. Hydro customers can expect a rate increase this year and next, which will add $3.75 per month to the average household bill, according to the province. 

B.C. Energy Minister Adrian Dix issued a directive to the B.C. Utilities Commission to increase hydro rates by 3.75 per cent a year for the next two years.

"This is what B.C. Hydro needs," Dix told reporters Monday. "We think this is the right approach. It provides clarity and stability in the system. It lets everyone know what the rates are."

Dix said even with the rate increase, British Columbians have among the lowest electricity rates in North America, paying almost half of what Albertans pay. The rate hike stays below cumulative inflation, he said.

For an average residential household, which pays about $100 a month for heat and electricity, the rate increase will mean an extra $3.75 per month.

The increase takes effect April 1.

"The rate adjustment will go toward supporting critical investments in our system that will ensure we maintain our status as a leader in renewable energy, encouraging overall economic growth and job creation,"  B.C. Hydro's CEO Chris O'Riley said in a statement.

The province said B.C. Hydro is facing rising operating costs due to inflation, added costs related to the Site C hydroelectric project coming into service and infrastructure costs related to boosting B.C.'s electrical grid.

This, as the province is facing "unprecedented" economic threats from U.S. President Donald Trump. 

B.C. Conservative Leader John Rustad said B.C. Hydro previously said the project would result in a 12 per cent increase to hydro bills. He thinks the province is hiding the rate hikes coming down the pipe. 

"We need transparency for people in British Columbia with regards to where our electricity rates are going," he said. "This 3.75 (per cent) seems to be a stop-gap. But it certainly does not answer the questions out there as to how much our electricity is going to cost going forward."

Dix did not rule out future rate hikes.

People who spoke to CBC News in downtown Vancouver seemed unfazed by the price jump.

"I'm a renter; I don't see a huge difference in that with my bills personally," said Reith Humphreys. "I've seen a much bigger increase in rent prices overall. [Hydro prices] could be a driving factor for rents generally as it's often something footed by landlords, that could be a concern."

WATCH | Former environment minister questions rate hike: 

Former environment minister questions B.C. Hydro rate hike

15 hours ago

Duration 12:37

Former B.C. Liberal environment minister Barry Penner is questioning the province's 3.75 per cent, two-year rate hike for B.C. Hydro customers. Penner says that the province's power utility has seen its operating costs increase by more than 10 per cent each year even as the rate of inflation has come down, and there needs to be a regulatory investigation.

Kerry Thompson said she has no objection to the cost increase given the Site C dam project "and all sort of other investments that we need in our infrastructure network."

Dix noted that B.C. Hydro offers a customer crisis fund, which provides grants to those in temporary financial crisis. An additional $1.9 million has been added to the fund, which is expected to help approximately 4,700 households between now and April 2026.