Residential Rates
Notice of bill increase and rate rider change
Following recent decisions from the B.C. Utilities Commission (BCUC), these changes come into effect as of April 1, 2024.
- The rate rider on your bill is now broken down into two types of rate riders.
- There is a net bill increase of 2.3%, which is about $2 per month for the average residential customer. This accounts for rate riders at -2.3% and -2.5% as well as an annual rate increase of 6.4%.
Residential Conservation Rate
Most residential customers are charged under the Residential Conservation Rate. Residential customers under the Residential Conservation Rate receive service under rate schedule 1101 of the Electric Tariff.
Customers are charged one rate for electricity up to a certain threshold in each billing period, and a higher rate for all electricity use beyond that threshold. This "stepped" rate is designed to encourage conservation.
Note: In February 2023, we submitted an application to the B.C. Utilities Commission for a new optional time-of-use rate for residential customers. Learn more about the rate application.
How your threshold is determined
On your bill, the threshold for the lower Step 1 rate is calculated by multiplying the number of days in the billing period by 22.1918 kWh per day.
Customer meters are read on different days so billing periods can vary from bill to bill. The 22.1918 kWh per day is the daily equivalent of 1,350 kWh for the average two month billing period.
For example, a 60-day billing period would have a Step 1 threshold of 1,332 kWh (60 days x 22.1918 kWh per day). A 58-day billing period would have a 1,287 kWh (58 days x 22.1918 kWh per day) Step 1 threshold.
Why do we have a Step 2?
The stepped rate structure provides a price incentive to encourage conservation–which is the cleanest, cheapest and simplest way to meet growing electricity demand.
Knowing how to read your BC Hydro residential customer bill is a good way to monitor and manage your electricity usage.
Basic ChargeA small, daily amount that partially recovers fixed customer-related costs, including customer service channels, metering, billing, payment processing, collections, and distribution system costs that are customer-related (electrical lines and transformers). |
22.53 cents per day. |
Energy Charge |
Step 1 10.97 cents per kWh for first 1,350 in an average two month billing period (22.1918 kWh per day). Step 2 14.08 cents per kWh over the 1,350 Step 1 threshold. |
Minimum Charge |
22.53 cents per day. Equal to the Basic Charge. |
Rate rider types
During a review of our most recent Revenue Requirements Application, the B.C. Utilities Commission (BCUC) directed that forecasted trade income should be managed separately through a new trade income rate rider starting on April 1, 2024.
This amount was previously included in the deferral account rate rider (which was referred to simply as “rate rider” on your prior bills) and is not a new charge.
Rate riders can be a negative or positive amount. They’re applied to the total of all charges before the taxes and fees that we collect on behalf of other organizations, such as the regional transit levy for customers in the Lower Mainland.
Amounts received from the trade income rate rider are used to recover the difference between forecasted and actual income from electricity sales to other utilities by Powerex Corp., our wholly owned subsidiary.
Application to set the rate riders
As part of their decision, the BCUC directed us to apply annually to set the amounts for both the deferral account rate rider and trade income rate rider. In response to our application to set the rate riders for fiscal 2025, the BCUC issued its final decision [PDF, 540 KB] on February 20, 2024 which determined that:
- The deferral account rate rider be set at -2.5%, and
- The trade income rate rider be set at -2.3%.
This decision results in a net bill increase of 2.3%, or about a $2 increase per month on average for residential customers, after factoring in the annual rate increase of 6.4% for fiscal 2025.
Although the bill impact as approved in our most recent Revenue Requirements Application would have been a bill decrease of -5.9%, it would have also resulted in a forecasted bill increase of 12.1% in fiscal 2026. To reduce the year-over-year bill volatility, or provide more bill stability longer term, we applied for a 2.3% bill increase in fiscal 2025.
Fiscal 2025 Residential Inclining Block Pricing Principles Application
In addition, the BCUC made their decision [PDF, 162 KB] on our most recent Residential Rate Pricing Principles Application, which determines how annual rate increases or decreases are allocated to the charges in Rate Schedule 1101 and 1121. They determined that:
- The Basic Charge should increase with the general rate increase,
- The Step 2 Energy Charge should remain constant, and
- The remainder of the revenue to be collected from residential customers be recovered through the Step 1 Energy Charge.
This means the exact bill impact will vary for each customer depending on their electricity use, with customers whose electricity use is primarily in Step 1 having a greater increase.
Declaration of eligibility for Residential Service rate
The declaration indicates that the service address and meter number you're applying for is a residential dwelling and meets the BC Hydro Electric Tariff ('Tariff') definition for what qualifies for Residential Service where energy is used:
- In a dwelling.
- In a dwelling where a portion is used to carry on a business if the whole dwelling is supplied through one meter (e.g. home based business, or Bed & Breakfast with no more than 3 rooms to rent).
- In the common areas of multiple occupancy buildings if such common areas are used only for the common benefit of the residential dwellings in that building.
If you meet these eligibility requirements and wish to be placed on the Residential Service rate, please submit your declaration [PDF, 37 KB] and required documents.
Exempt Residential Service Rate for farms
The Exempt Residential Service Rate is available to eligible farms. If you are currently on the Residential Conservation Rate but your property is classified as a farm and the electricity is for farm use, you may be eligible for the Exempt Residential Service Rate. Electricity service under the Exempt Residential Service Rate must not be used for:
- Any dwelling other than a single-family dwelling.
- The processing of farm products that aren't produced on your farm.
- The selling of farm products or other products to the public, other than from a small roadside stand.
- Any commercial use not normally carried out on a farm.
If you meet these eligibility requirements and wish to be placed on the Exempt Residential Service Rate, please submit your declaration [PDF, 74 KB] and required documents.
Customers under the Exempt Residential Service Rate receive service under rate schedule 1151 of the Electric Tariff.
Basic ChargeA small, daily amount that partially recovers fixed customer-related costs, including customer service channels, metering, billing, payment processing, collections, and distribution system costs that are customer-related (electrical lines and transformers). |
24.03 cents per day. |
Energy Charge |
12.21 cents per kWh. |
Minimum Charge |
24.03 cents per day. Equal to the Basic Charge. |
Please note that in the event of differences between the details noted here and the official Electric Tariff issued by BC Hydro, the official Electric Tariff will prevail.