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Letter: Pain of a two-tiered pricing model

I have been witness to the extreme despair caused by the two-tiered rate structure for electricity.

In my appointed political position I have been witness to the extreme amount of despair and helplessness caused by the punishing two-tiered rate structure for electrical power.

It was not that many years back that the provincial government was strongly encouraging people to switch to electrical heating as it was abundant and would be the most economical heating well into the future. This push for change was emphasized in the rural areas where oil was the choice as gas was not then and still is not available.

In recent years there has been a push to lower power consumption by increasing the price and the introduction of a two-tiered pricing model. This has led to questionable practices, such as the balancing of provincial spending by pulling large dividends from crown corporations, and the supporting of unreasonable ventures by forcing the purchase of outrageously priced power from private utilities.

This is nothing less than taxation without representation.

These price-increasing policies are proving to have a devastating social cost as recently witnessed in Ontario. The most severely affected of course are the disabled and retired on fixed income, lower income families, (adding to child poverty and the upswing in food bank use also the forcing of some from their homes into social housing). There is also the issue of many unsafe practices being used in the attempt to keep the cost of heating down some of which I believe have already caused a loss of life and property.

The outcries have up to now been falling on deaf ears. As this is an election year and the problem is wide spread it makes now a good time to propose a solution. Only you can create the climate for change by your involvement.

The most prudent course of action would be to remove or at minimum increase the second-tier kick in point to at least 4,800 kwh at least for the winter months, and termination of any further rate increases. Block pricing should also be eliminated.

This is reasonable as the cost of production for hydroelectricity is calculated in Canada at $0.03 to $0.05 per kwh depending on geographic area. For reference the U.S. calculates the cost of hydroelectric power at $0.0085 to $0.02 per kwh.

The decision from the utilities commission was not unexpected as the commission is a tool of the government and the excuse that this pricing is needed to encourage conservation is at best ludicrous as no similar unreasonable price increases are suggested for the much less environmentally friendly use of natural gas.

One Liberal campaign manager was quoted to me as having said: “Only 8 per cent of the people are adversely affected by the pricing of electricity therefor there would be no political action on this issue.”

I would suggest to him and Ms. Clark that the Liberals hold more than a few seats by less than 8 per cent so it might be best to take these people seriously, do the right thing and actually protect and defend our citizens before we end up in the same mess as Ontario.

As in Ontario the rural areas are the hardest hit by this as the most economical alternate fuel is not available in most outlying areas. To add to this these areas are usually under policed creating a need for security lighting and other electronic deterrence methods. It is apparent that in the other 92 per cent of the population there is considerable compassion and support for this movement as is being witnessed by the protest letters from the Regional District, the Town of Oliver and I am told other Districts and Municipalities.

These local governance bodies endure directly the fallout and social disparity from this overpricing policy.

Try to remember that no matter who holds the reins of power in Victoria you are asking them to give up over a BILLION dollars in monies that are being used to make the books look good.

This will not go down easy. Therefore it is necessary to obtain a commitment now from whoever will hold power after the election.

Parliamentary democracy is a messy thing and sometimes slow to act but even though you may not feel it, the power to effect meaningful change really is with you the people.

Use your time wisely.

Rick Knodel

Alternate Director “Area C”

Regional District Okanagan Similkameen