VICTORIA – The release of the government's review of B.C. Hydro shows Liberal energy policy is at the root of skyrocketing electricity rates in recent years, say the New Democrats.
“What we saw in the review is a Liberal government forced to admit to years of wrong-headed mismanagement of the jewel of British Columbia's crown corporations,” said New Democrat energy critic John Horgan.
“The Liberals thought they could impose energy policy and ignore the experts; the consequences are hitting home now,” said Horgan, pointing to the billion-dollar smart meter program and high-priced long-term purchases from Independent Power Producers as prime examples of the real reasons rates have been going through the roof.
“Constant interference with the role of the B.C. Utilities Commission – meant to protect ratepayers – has led to a public company with too little oversight on behalf of its owners from a government bent on implementing bad policy without regard for the consequences,” said Horgan.
The review, completed in June and released publicly on Thursday, is critical of a central point of the Liberals energy policy: electricity self sufficiency. The goal, introduced in the 2007 Energy Plan and written into law in the 2010 Clean Energy Act, forces B.C. Hydro to acquire enough power to be self-sufficient in extreme low water years, plus acquire 3000 GWH of additional insurance power by 2016.
“The self sufficiency goal sounds good at first blush, but it has created a multi-billion dollar problem for this and future generations,” said Horgan. “I'm glad to see the panel had the guts to say so, and I hope government is listening and puts the public interest above its private power friends.”
The review also pointed out savings for ratepayers can be found in a number of other areas, including water rental rates which B.C. Hydro pays a premium for to the government, the dividend the Crown Corporation pays back to government from its profits, and up to 1000 job reductions.
“I'm concerned that a thousand families will be paying the price for the Liberals' mismanagement of B.C. Hydro – the costs stem from bloated contracts with Independent Power Producers and a questionable billion-dollar smart meter program, not from family-supporting jobs. Maintaining safety standards and customer service are integral to the long-term success of the corporation,” said Horgan.
“At a minimum, I expected the government to take a step back from the smart meter program to save costs and ease public anxiety over potential health and privacy concerns.”