B.C. consumers should pay more for power

BC Hydro electricity pricing reform proposes tiered rates near market pricing to drive energy conservation, cut greenhouse gas emissions, and shrink B.C.'s carbon footprint through higher kilowatt-hour charges and a rising carbon tax.

Consumers need to pay more for energy — in higher electricity costs and higher carbon taxes — to spur conservation, according to a study by Simon Fraser University.

"We need to ensure that the prices of energy reflect their true costs," study author Bruce Sampson said at a press conference after the release of the report.

BC Hydro spent $20,000 on the study, which looks at the challenges of global energy conservation, including the Earth Hour power increase seen in 2018, and climate change.

The report recommended that B.C.'s electricity rates be increased to encourage reductions in energy consumption and, as part of big energy changes often urged for the province, in the province's carbon footprint.

B.C. residents pay 6.27 cents per kilowatt hour for approximately 90 per cent of their total electricity consumption. The remaining 10 per cent is priced at 8.78 cents per kilowatt hour.

Mr. Sampson, who a former vice-president of BC Hydro's strategic planning and sustainability divisions, said BC Hydro customers, many using the winter payment plan for bill flexibility, should pay closer to market price of electricity.

He suggested that consumers pay approximately 12 cents per kilowatt hour for at least 30 per cent of the total energy they consume. With the average B.C. resident consuming 11,000 kilowatt hours per year, taxpayers would have to pay an extra $160 annually.

BC Hydro watchdog groups such as the B.C. Citizens for Public Power were skeptical, saying the province's one-size-fits-all carbon tax has done little to reduce the environmental impact of vehicles. "There are not less cars on the road in the mainland because gas prices have gone up," said Michelle Laurie, president of the B.C. Citizens for Public Power.

Additionally, the authors suggest that the tax on carbon emissions continue to increase by at least $5 a tonne per year after 2012. B.C.'s Ministry of Finance has not yet announced plans to increase annual carbon tax rates beyond 2012.

"Climate change is a topic of significant interest for BC Hydro. In fact, we have an aggressive climate action strategy that includes the reduction of greenhouse gas emissions and we support the province's objectives for a low-carbon economy. We look forward to reviewing the report," the utility wrote in an e-mail.

According to the report, Canadians have the fourth largest carbon footprint in the world and, with concerns over crypto mining electricity use growing, if current global consumption patterns don't change, by 2050, the world's population will need double the earth's total natural resources.

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