BC Hydro customers will face a rate hike this year and in 2026, leading to an increase of $3.75 per month for an average household, the province says.
B.C. Energy Minister Adrian Dix announced March 17 that he had directed the B.C. Utilities Commission to apply a 3.75 percent increase in hydro rates each year for the next two years, for a total increase of 7.5 percent by 2026.
A typical household in the province pays roughly $100 a month for heat and electricity, the province said in a press release. With this year’s rate increase, the average homeowner will pay $103.75 per month. The rate change takes effect April 1 and the second 3.75 percent increase will be implemented next April.
BC Hydro is experiencing an increase in operating expenses driven by inflation, additional costs associated with the Site C hydroelectric project coming into service, and infrastructure costs aimed at boosting the province’s electrical grid, in addition to facing U.S. tariffs imposed by President Donald Trump, the province said.
The increase is a “rate stability” move in response to the “economic and trade uncertainty” faced by both B.C. businesses and residents, Dix said, adding that it will “guarantee” electricity in the province stays below cumulative inflation for seven consecutive years while also allowing BC Hydro to build infrastructure and grow supply.
BC Hydro CEO Chris O’Riley said the rate adjustment will also be used to support projects like the Site C hydroelectric site which is expected to power 500,000 homes and boost supply by 8 percent.
Dix said British Columbia has one of the lowest electricity rates in North America despite the upcoming rate hikes, paying nearly 50 percent less than consumers in Alberta, and said the government has no plans to change that.
The minister said BC Hydro’s cumulative rate increases between 2017-2018 and 2026-2027 will be 12.4 percent less than cumulative inflation.
Conservative MLA David L. Williams, his party’s critic for BC Hydro, called for more transparency in the rate decision.
“I have little faith in the current BC Hydro increase,” Williams said in a social media post. “Let’s see the books..with all costs accounted for. Residents need affordable, reliable energy and [do] not want any future shock.”
