A new study says converting B.C. restaurants from natural gas to electric-only would cost $800,000 per establishment in construction, equipment costs and lost business.
The study, which was done in partnership with the BC Restaurant and Foodservices Association and BC Coalition for Affordable Dependable Energy, was released on Wednesday, and says B.C. municipalities should drop the early implementation of natural gas bans in new buildings.
To break down the costs, the study says for a 3,500-square-foot restaurant $450,810 would be the price for construction, renovation and new equipment. Add in the business interruption costs of $340,000, it brings the total to $890,810.
“Restaurants in B.C. just can’t possibly afford an $800,000 bill simply to remove perfectly functioning natural gas and renewable natural gas equipment and replace it all with electrical equipment – it’s far too expensive at any time and especially when restaurants are under enormous financial pressure,” Ian Tostenson said,” BC Restaurant and Foodservices Association’s president and CEO.
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“We all want a cleaner environment and are doing all we can, but this would instantly put many of our members right out of business.”
The energy coalition said several municipalities are adopting Zero Carbon Step Code regulations several years ahead of the province’s 2030 timeline.
BC Coalition for Affordable Dependable Energy’s director Bill Tieleman points to the study to show municipalities that are implementing natural gas bans on new builds need to reconsider the severe impact on small and medium-sized businesses.
“(We) believe that municipalities, which are imposing natural gas and renewable natural gas bans years ahead of the provincial 2030 plan, are going to cause serious negative economic impact and job losses on restaurants but also on other small and medium-sized businesses – without any significant reduction in carbon emissions or any improvement in air quality,” Tieleman said.
“These natural gas bans on new buildings will also be very costly, with the price of electricity going up as B.C. imports more power from outside the province — $500 million last year – and some of it from fossil fuel power plants that create greenhouse gas emissions that completely undercut the zero carbon goals.”
The study also raises other questions, including whether existing BC Hydro electrical grids can handle a significant increase in power, especially in areas where multiple restaurants are located.
“It’s fine to say, ‘Let’s go electric,’ until you take a serious look at exactly how that would work and how expensive it would be,” Tostenson said.
“We can’t just impose regulations like some municipalities are now doing without considering the economic impact on restaurants or the feasibility of multiple restaurants in a municipality having to convert to electricity.”
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