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Explaining Your British Columbia Electricity & Natural Gas Rates

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Electricity Rate Breakdown

Electricity rates for residences and businesses in British Columbia are broken down into two categories: a basic charge or customer charge fee and an energy charge. Small, medium, and large commercial properties may also pay a demand and minimum charge.

The basic charge is a daily fee that is charged—regardless of your electricity consumption—to help cover the cost of maintaining and repairing the energy grid used to distribute electricity throughout the province.

This fee varies depending on whether the customer is a homeowner or business, and in the case of the latter, the size of the business.

As of April 1, 2024, the basic charge for BC Hydro customers is:

  • Residential: $0.2253 per day
  • Small General Service: $0.3931 per day
  • Medium General Service: $0.2882 per day
  • Large General Service: $0.2882per day

As of April 1, 2024, for FortisBC customers, the basic charge is:

  • Residential: $45.278 per 60-day billing period
  • Small Commercial: $55.69 per 60-day billing period
  • Commercial: $65.37 per 30-day billing period

Your energy charge is what you are charged for the electricity that you consume, as measured in kilowatt-hours (kWh). This rate is not determined by your electricity provider. It is set by the British Columbia Utilities Commission, according to the mandate established by the Utilities Commission Act. This rate is calculated to cover the cost of generating and transmitting electricity while hedging against changing market conditions. The residential energy charge is tiered into two steps. In step 1, customers are charged for the first 1,376 kWh of electricity used. In step 2, customers are charged for every kWh over the 1,376 threshold.

As of April 1, 2024, for BC Hydro customers, the energy charge is:

  • Residential: $0.1097/kWh for the first 1,376 kWh, $.01408/kWh for every kWh over the 1,376 threshold.
  • Small General Service: $0.1352/kWh
  • Medium General Service: $0.1044/kWh
  • Large General Service: $0.0653/kWh

As of April 1, 2024, for FortisBC customers, the energy charge is:

  • Residential: $0.14160/kWh
  • Small Commercial: $0.12104/kWh
  • Commercial: $0.08355/kWh

The demand charge relates to electricity demand during consumption periods (e.g., peak hours and off-peak hours). The highest 15-minute demand average recorded in each billing period is used to calculate the demand change on customer bills. The following is B.C. Hydro’s demand charge:

  • Medium General Service: $5.83 per kW
  • Large General Service: $13.30 per kW

The minimum charge is used by B.C. Hydro to cover the cost of maintaining equipment year-round for customers with high electricity usage in the winter but low electricity use in the summer. As of April 1, 2024, the minimum charge for B.C Hydro customers is:

  • Small General Service: $0.3931 per day
  • Medium General Service: Equal to 50% of the highest Demand Charge during the previous November 1-March 31 period. The Basic Charge, Energy Charge, and Demand charge are replaced by the Minimum Charge if their sum is less than this amount.
  • Large General Service: Equal to 50% of the highest Demand Charge during the previous November 1-March 31 period. The Basic Charge, Energy Charge, and Demand charge are replaced by the Minimum Charge if their sum is less than this amount.

Exempt General Service Rate for Rate Zone 1B

The Exempt General Service Rate applies to business customers in the District of Bella Bella with an annual peak demand of at least 35 kW. The following are the charges for the Small General Service rate:

  • Basic Charge: $0.2882 per day
  • Demand Charge:
    • $0/kW for first 35 kW
    • $7.02/kW for next 115 kW
    • 13.47 for remaining kW
  • Energy Charge:
    • $0.1372/kWh for the first 14,800 kWh
    • $0.0659/kWh for remaining kWh
  • Minimum charge: Equal to 50% of the highest Demand Charge during the previous November 1-March 31 period. The Basic Charge, Energy Charge, and Demand charge are replaced by the Minimum Charge if their sum is less than this amount.

The demand charge for the FortisBC Commercial Service rate is 13.75/kW of electrical demand above 40 kW.

Natural Gas Rate Breakdown

The natural gas rates charged by FortisBC are broken down into four major categories: a basic charge, delivery charge, storage and transport charge, and the actual cost of gas. The amount charged for these elements of your natural gas service varies according to location. FortisBC’s 3 service territories are:

  • Mainland, Vancouver Island & Whistler
  • Revelstoke
  • Fort Nelson

Given the complexity of the varying rates for residential and commercial customers in these territories, only current residential rates will be provided below. (Please note: FortisBC provides propane, rather than natural gas, to customers in the Revelstoke service area, but the pricing structure is otherwise identical.)

The basic charge is a flat daily fee that covers the cost of maintaining British Columbia’s natural gas transmission and delivery system. As of January 1, 2024, the basic charge is:

  • Mainland, Vancouver Island & Whistler: $0.4216 per day
  • Revelstoke: $0.4216 per day
  • Fort Nelson: $0.4216 per day (covers the cost of the first 2 GJs of natural gas)

The delivery charge is a per-GJ fee that covers the cost of delivering the natural gas you use to your home or business. This charge does not include the actual cost of purchasing the gas. As of January 1, 2024 the delivery charge is:

  • Mainland, Vancouver Island & Whistler: $6.708/GJ
  • Revelstoke: $6.708/GJ
  • Fort Nelson: $5.664/GJ

The storage and transport charge covers the cost of storing and transporting the natural gas used, prior to final delivery to your home or business. As with the delivery charge, this does not cover the actual commodity cost of the gas. As of January 1, 2024, the storage and transport charge is:

  • Mainland, Vancouver Island & Whistler: $0.239/GJ
  • Revelstoke: $0.239/GJ
  • Fort Nelson: $0.012/GJ

The cost of gas covers the cost of purchasing the natural gas you use. As of 2018, the cost of gas is:

  • Mainland, Vancouver Island & Whistler: $1.549 per GJ
  • Revelstoke: $11.791 per GJ
  • Fort Nelson: $2.230/GJ

Previosuly, the pricing structure for the cost of gas in the Fort Nelson service area differered from the other FortisBC service areas. The cost of gas charge incorporated the delivery and storage and transport charges. In 2018, the cost of gas in Fort Nelson broke down as follows:

  • First 2 GJs of gas (included in minimum basic charge): $0.5877 per day
  • For the next 28 GJ per month: $5.519 per GJ
  • For any usage over 30 GJ per month: $5.417 per GJ

On October 6, 2023, FortisBC recieved approval from the Britch Columbia Utilities Commission (BCUC) to merge the Fort Nelson natural gas rates into that of its other natural gas customer base. As of January 1, 2023, all FortisBC customers woll pay the same cost of gas rate.

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