The BC Utilities Commission ordered FortisBC to report to them after a flurry of complaints, petitions, and bad press over the 2 tier rate system – designed to reduce consumption and be revenue neutral to the company.

FortisBC now says in a filed report: consumption has been reduced about 7 percent – revenue is down 4.5% below forecast and the majority of customers are getting a better deal than expected.

97,000 customer accounts surveyed in a one year period ending June 2013.

Two tier rate: one rate for those consuming under 1600 KWH – a higher rate for those using more.

The people complaining are those that cannot heat with gas, live in rural areas,  and use a lot of energy each month kicking in the higher rate.

71% of power consumers are paying less says FortisBC.

Many complaints came from local politicians who stated that rurally situated consumers with no choice but to heat their homes with electricity were being  impacted by the rate structure in a devastating way.

Politicians have suggested the threshold be raised, “this solution is most often proposed in the absence of an understanding of how the various components of the Residential Conservation Rate (RCR) is determined and may not yield the results that these parties seem to expect,” says FortisBC.

The utility company states “while customers may express a concern the RCR is a means to collect more revenue than approved by the Commission, this concern is unfounded. If their rates were lowered – others would pay for it.

Local MLA Linda Larson, in her submission states, “the first tier of the 2 tier system is too low”.  A blended rate is needed”

“I am concerned that people on fixed incomes in rural areas affected will have to choose between heat and food. I urge you to find an alternative billing system.”