News Release - Mar. 3, 2010

VICTORIA - The B.C. Liberals are trying to sneak through a 29 per cent electricity rate hike, demanding B.C. Hydro deliver an extra $254 million to government in the next year alone, Opposition energy critic John Horgan said today.

"The day after a provincial budget that offered nothing for the B.C. economy beyond a new, damaging consumer tax in the HST, B.C. Hydro is applying to charge you an extra nine per cent this year on your hydro bill, with more to come over the next two years," said Horgan, noting that Hydro applied for the increase with the B.C. Utilities Commission today.

"The government is trying to claim the increase is to pay for infrastructure upgrades, but that is only part of the story. The fact is, the B.C. Liberals are sneaking in what amounts to a tax increase by demanding that B.C. Hydro pay the government an extra $254 million this year, and B.C. Hydro has no choice but to pass on that increased cost to ratepayers."

The provincial government's three year fiscal plan, laid out in yesterday's budget, calls for B.C. Hydro to increase electricity rates by 9.11 per cent this year, 12.92 per cent in 2011, and 4.81 per cent in 2012, which, compounded, amounts to a 29 per cent hike.

"Hydro rates are spiraling out of control. This year's budget proposed another 29 per cent in rate increases over the next three years, which comes on top of rate increases of seven per cent each year since 2008," said Horgan. "To make matters worse, the B.C. Liberals' Clean Energy Act could make it easier for private power producers to negotiate lucrative contracts that gouge B.C. Hydro. Ultimately, this buy-high, sell-low export policy could bankrupt our public utility."

While the B.C. Liberals claim to be lowering taxes, British Columbians are feeling the effects of increased fees and tax shifts. In addition to hydro rate hikes, the HST will cost consumers an extra $1.9 billion each year and MSP premiums are going up again on the heels of an increase last month.

Horgan noted that even though the rate increases have not yet been approved by the BCUC, the revenue assumptions in the B.C. Liberals' budget include the 29 per cent rate hike.

"It's just the latest budget lie from the B.C. Liberals. They're basing their budget on hydro rate hikes that haven't even been approved yet," said Horgan. "It's time to scrap the B.C. Liberals' energy plan and start again with ratepayers' interests first."     

Carole James and the Official Opposition have been holding the B.C. Liberals accountable for breaking their word on the HST, and for backtracking on their election promises to protect health care, education, and other vital services.         

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Media Contact: Mike Lowe  250-886-7064