80% Increase You Say?

When was the last time you had an 80% wage increase? How about pension increases for seniors? Any 80% increases there?

Of course the answer is no. Not now, not never.

How can any consumer budget for such an increase? Where do they find the money?

The recent announcement by the BC Utilities Commission that an 80% rate increase has been approved for Fortis BC hit the airwaves and newsrooms with the force of a major headline, today. A spokesperson on the Global television broadcast, without blinking an eye, explained that the increases were due to a much hotter than normal summer than expected. Whatever that meant.

The focus switched in a heartbeat to energy-saving strategies as the place for cash-strapped consumers to find relief that, by innuendo, pointed the finger of blame at consumer wastage rather than the net income of $46 million for Fortis BC with their electric operations and the net income of $151 million for gas operations in 2015.
The commission’s approval draws attention to whom it represents and how this fits into the best interests of the public. I say this as I do not believe an 80% increase benefits the economy or middle and lower income families already struggling with inflation, tax increases and ever-rising consumer debt levels presently at $559 billion as reported by the Bank of Canada.

One could argue that this 80% increase is a result of poor management and attempts to conceal it under a hot summer sun.

Alternatively, one could argue that an 80% increase is a bold step by a private company to increase profits.

The commission’s detached attitude towards the public is troublesome and asks more complex questions than the role a hot sun plays in the annual reports of energy companies.

However, the public, as one might have observed, can speak at election time. The premier of Ontario recently discovered that the cost of utilities such as electricity do factor in at voting time and to beware that this phenomenon will likely recur in BC. The wallet never forgets.

As mentioned in the Vancouver Sun, the impact of this approved increase by the BC Utilities Commission is all-pervasive and trickles down to Strata Corporations that represent hundreds of thousands of individuals and families.

An 80% increase in any calendar year should evoke detailed public scrutiny of any bureau, commission or crown corporation. How does this benefit the public when it should be quite obvious that Fortis BC, a private for profit company, is simply increasing profits.