BC Hydro bills in the province are set to go up by 7.1 per cent April 1.
A Feb. 15 BC Utilities Commission (BCUC) decision to approve a rate increase of 3.9 per cent came with a recommendation to double the current rate rider to five per cent.
The rate rider is a fee included on customers' bills that collects funds for BC Hydro's energy deferral accounts, ostensibly used to prevent sudden rate fluctuations.
But a report released Oct. 27, 2011, by auditor general John Doyle highlighted the utility's deferral account as a source of growing debt.
Doyle reported in March 2011 that $2.2 billion had been deferred, adding his expectation that the number would reach as much as $5 billion in 2017.
"BC Hydro uses deferral accounts to prevent sudden rate fluctuations that could result, for example, from higher-than-forecast market prices for energy or unexpectedly low water levels in reservoirs," the utility said in the announcement.
According to BC Hydro, the rate rider increase will add another $5 per month to the average electric bill.
