British Columbia’s utilities regulator has approved an application that will see Wesbrook residents in 15 residential buildings facing a near 50 per cent increase in heating and hot water rates over the next three years.
On October 28, the British Columbia Utilities Commission (BCUC) approved the application by energy company Corix Utilities to increase their rates by a range of 12 to 18 per cent annually for this year, 2026, and 2027. The company says the hikes are necessary to address revenue shortfalls from the Neighbourhood District Energy System (NDES) it operates in Wesbrook Place.
Under the new rates, residents being served by the natural gas-powered NDES will be paying $0.758 per square metre in 2025, increasing to $0.87 in 2026. The rate is scheduled to increase to $0.976 per square metre in 2027.
During a review process, the regulator received 123 letters of comment from residents, strata representatives, and the UNA. The bulk of the letters expressed the financial impact of the rate hikes, and some letter writers inquired why UBC wasn’t taking on some of the financial shortfall.
In approving the application, the regulator agreed with Corix that the rate hikes were necessary due to slower than anticipated construction of residential buildings in Wesbrook Place.
When UBC and Corix entered into a contract to build the NDES in 2015, the utility company anticipated that 23 buildings would be connected to the system by the end of 2023.
However, as of last month, only 15 buildings had been connected, representing 71 percent of the planned connections.
The full build-out of Phase 1 of Wesbrook Place is now not expected to be completed until the end of 2032, the BCUC notes.
With the slower than anticipated buildout in Wesbrook Place, Corix asserted it was not collecting enough revenues, putting the future of the NDES in jeopardy.
“The Panel notes that delaying the rate increase now would be detrimental to current and future customers … and to the utility by putting its ongoing financial viability at risk,” noted the BCUC in its decision.
When asked to respond to Corix’s assertion that the delays were the primary justification to raise rates, UBC’s Director of University Affairs Matt Ramsey said, “The BCUC’s 2014 approval for Corix to build and operate the NDES was based on a number of assumptions in a project plan, including the pace of Wesbrook Place growth.”
“UBC’s contract with Corix is clear that the assumed pace of growth is by its nature variable, dependent on housing market conditions such as strata and rental demand, financing capacity, and third-party developer interest,” he added.
While Ramsey said construction timing was one of many factors leading to increased costs, the regulator repeatedly referred to the delays in its decision. “The evidence shows that the costs to serve the UBC NDES are increasing, and the revenues are much lower than expected due to build out delays,” the BCUC decision noted.
“In the future, the Panel expects Corix to be proactive at the commencement of its projects by considering contingency plans to mitigate potential development delays,” the regulator added.
Rate hikes come as residents deal with higher cost of living
Wesbrook Place resident Leanne Bernaerdt said the regulator’s decision ignores the current stress on household finances faced by many community members.
“Corix made commitments when this neighbourhood was being planned and they have not fulfilled them by requesting an increase that is not in touch with the financial realities of its residents,” said Bernaerdt.
“It is not fair to be blindsided with rate increases this large. UBC and UNA need to act on behalf of all residents. BCUC needs to protect the residents of B.C. against monopolistic corporations.”
Despite Bernaerdt’s plea, no campus officials or organizations have stepped up to speak on behalf of the affected residents since the decision was issued.
In June, the UNA board sent a letter to the BCUC, urging the regulator to reject Corix’s application. However, the UNA has not issued a statement in response to the rate hike. Additionally, the matter was not discussed during the board’s November monthly meeting.
When asked about the financial burden the rate hikes will place on residents, Charlene Rowan Director, Marketing and Communications at Corix said, “The decision reflects the thoroughness of that process and ensures customers continue to receive safe, reliable service at just and reasonable rates.”
EMMANUEL SAMOGLOU IS THE MANAGING EDITOR OF THE CAMPUS RESIDENT.