On February 27, 2023, BC Hydro submitted a proposal for a new optional time-of-day (TOU) residential rate to the B.C. Utilities Commission (BCUC). On December 12, 2023, the B.C. Utilities Commission (BCUC) approved the application. The new rate system is available as of June 2024.
Read on to learn how the time-of-day rate works and what British Columbia residents can expect with the new plan.
How the rate plan works
Most BC Hydro customers are charged under the Residential Conservation Rate. The plan uses a two-tier system. Customers are charged one rate for electricity up to a certain limit in each billing period, and a second higher rate for all electricity use beyond that threshold. There is also a basic charge, which is a daily fee charged regardless of electricity consumption.
The time-of-day rate would still use the existing two-tier system. However, customers will receive discounts and surcharges on their bill depending on when they use electricity:
- A 5¢/kWh discount for electricity used overnight (11 p.m. to 7 a.m.)
- Customers will be charged a surcharge of 5¢/kWh for electricity used during on-peak hours (4 p.m. to 9 p.m.)
- No discounts or surcharges will be applied to usage during off-peak hours (7 a.m. to 4 p.m. and 9 p.m. to 11 p.m.)
As you can see, the best time to use electricity under the time-of-day pricing is during overnight hours. It is also cheaper to use electricity during off-peak periods in BC, which are from 7 a.m. to 4 p.m., and from 9 p.m. to 11 p.m.
The benefits of time-of-day pricing
The main advantage of the time-of-day rate is it helps residents save money on their electricity bills through the 5¢/kWh discount. Encouraging residents to shift energy usage to off-peak periods helps the province manage electrical demand and improves overall grid reliability.
Disadvantages of the time-of-use plan
Residents who typically use their large appliances during peak hours will not see much benefit from the new time-of-day pricing. For example, the bulk of a large family’s energy usage (e.g., washer, dryer, stovetop/oven etc.) would occur during peak times. If you fall into this category, it is best to stick with the other rate options offered by B.C. Hydro. Otherwise, you risk the 5¢/kWh surcharge.
To determine whether the time-of-day plan is right for you, consider your energy usage and lifestyle habits. Residents who primarily use energy during late-night hours will see the greatest benefit from the plan.
How to apply for the time-of-day rate
The time-of-day rate is optional. Interested customers will have to sign up for the program. Customers who are not interested will see no changes to their rate plan.
To learn more about time-of-use electricity plans across Canada, check out our article on Ontario’s time-of-use rate.
