Residential tiered rate
Most residential customers are charged under the tiered rate, formerly called the residential conservation rate. This rate has been the default rate for residential customers since 2008.
How the tiered rate works
On this rate plan, you're charged a lower (Tier 1) price for electricity up to a certain threshold in each billing period, and a higher (Tier 2) price for all electricity use beyond that threshold. This tiered rate is designed to encourage conservation.
This rate is Rate Schedule 1101 of the Electric Tariff.
How the Tier 1 threshold is determined
On your bill, the usage threshold before you reach the higher Tier 2 pricing is calculated by multiplying the number of days in the billing period by 22.1918 kilowatt-hours (kWh) per day.
Customer meters are read on different days so billing periods can vary from bill to bill. In general, here are the thresholds based on bill frequency:
- Bi-monthly billing has a Tier 1 threshold of about 1,350 kWh.
- Monthly billing has a Tier 1 threshold of about 675 kWh.
The 22.1918 kWh per day is the daily equivalent of 1,350 kWh for the average two-month billing period, which was based on 90% of the median usage of homes in B.C.
Whether you're billed monthly or bi-monthly depends on your property type and if you've changed your rate plan.
Why do we have a Tier 2?
The two-tier rate structure provides a price incentive to encourage conservation–which is the cleanest, cheapest and simplest way to meet growing electricity demand.
What you'll see on your bill
Energy Charges |
Tier 1 10.97 cents per kWh for all usage under the Tier 1 threshold, e.g.
Tier 2 14.08 cents per kWh over the Tier 1 threshold. |
Basic Charge A small, daily amount that partially recovers fixed customer-related costs, including customer service channels, metering, billing, payment processing, collections, and distribution system costs that are customer-related (electrical lines and transformers). |
22.53 cents per day. |
| Minimum Charge | The Basic Charge. |
For help understanding your bill, check out these resources:
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Eligibility
In select circumstances, we may request a declaration that indicates that the service address and meter number you're applying for is a residential dwelling and meets our Electric Tariff ('Tariff') definition for what qualifies for Residential Service where energy is used:
- In a dwelling.
- In a dwelling where a portion is used to carry on a business if the whole dwelling is supplied through one meter (e.g. home based business, or Bed & Breakfast with no more than three rooms to rent).
- In the common areas of multiple occupancy buildings if such common areas are used only for the common benefit of the residential dwellings in that building.
If you meet these eligibility requirements and wish to be placed on the Residential Service rate, please submit your declaration [PDF, 37 KB] and required documents.
Please note that in the event of differences between the details noted on this page and the official Electric Tariff issued by BC Hydro, the official Electric Tariff will prevail.