The B.C. government has launched a two-phase review of its public hydroelectricity provider in the hopes of controlling costs and curbing rate increases.
For the first phase, staff from several provincial ministries will be working with BC Hydro to find "cost savings, efficiencies, new revenue streams and other changes" to keep rates down over the long term, the government said in a news release.
According to the NDP, rates have increased 25 per cent since 2013, and 70 per cent since 2001.
They went up three per cent in April despite a campaign promise from Premier John Horgan to freeze rates. The NDP did apply to the B.C. Utilities Commission to delay the increase for a year, but was turned down.
Recommendations from the first phase of the BC Hydro review are expected over the summer, and will help the utility company decide on its next rate application in February 2019.
To provide some relief to businesses in the meantime, the government is phasing out provincial sales tax on their electricity bills. The tax was cut by 50 per cent in January, and will be eliminated altogether next April.
Residential hydro bills are already exempt.
The second phase of the review, expected to begin late this year, will task a panel of experts with figuring out how BC Hydro can take advantage of "shifts taking place in the global and regional energy sectors, technological change and climate action," the government said.
Those recommendations are expected to be delivered in summer or fall 2019.
