FortisBC says its electric rates for residential customers will be changing next week as it starts moving from a two-tiered rate to a single, flat rate.
The change will start on July 1. Earlier this year, the B.C. Utilities Commission approved the changes after Fortis sought permission for a multi-year rate-making plan.
The plan spanned from 2020 to 2024.
“As we went through the rate design process, we facilitated an open dialogue with our customers to gain insight as to what their needs were in relation to how our rates are structured,” said Diane Roy, vice-president of regulatory affairs for FortisBC.
“This first phase towards a single residential rate is based on that input.”
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According to Fortis, for residential customers, the phase-in period will gradually reduce the higher tier rate and increase the lower tier rate until a single, flat rate is established by 2023.
Fortis says during the first phase, the higher tier will decrease from 15.617 to 14.915 cents per kilowatt-hour, though the lower tier will increase from 10.117 to 10.394 cents per kilowatt-hour.
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Fortis also said the customer charge will be changing from $16.04 to $16.58 per month.
The energy company also said it will be establishing a single rate by 2021 for its commercial customers, adding this will reduce both the higher and lower tiered energy charges. The first phase of these changes will also begin on July 1, 2019.
Fortis claims these changes are revenue neutral.
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