No fooling, on April 1 several things are going to cost British Columbia consumers more.
Here’s a look at five things that are set to go up or that could put inflationary pressure on prices starting next month. The good news is that government credits may result in a smaller increase or even a net decrease in a couple of cases.
Carbon tax
B.C. is raising the carbon tax on April 1 from $65 a tonne to $80 a tonne. The provincial government also announced this winter that it is moving to an industry-specific system where only those companies that exceed carbon emission targets have to pay.
In other parts of Canada, there is a federal carbon tax program, but B.C. was the first province to bring in carbon pricing back in 2008 and doesn’t pay into that system. Thus, taxpayers in B.C. don’t receive federal carbon tax rebates as those in Alberta, Ontario and other provinces do.
While B.C. similarly offers carbon tax credits to individuals and families to offset the direct cost, the effect of increasing gasoline, diesel and natural gas taxes paid by the trucking industry and others means the higher costs will likely be passed on to consumers.
Electricity
B.C. Hydro has announced a 2.3 per cent rate increase effective April 1. That translates to about a $2 increase to an average residential bill each month.
However, the B.C. government announced in February it is offering an electricity affordability credit that should more than offset this year’s general rate increase.
“Nearly all residential, commercial and industrial customers will pay less this year than they did last year,” explained B.C. Hydro spokesperson Mora Scott. The credit is based on a customer’s annual consumption, but residential households on average will get a total credit of about $100 over 12 months starting in April.
Commercial and industrial hydro users will get a credit of 4.6 per cent, which should save them an average of $400 or $200,000 respectively in operating costs.
The credits will be applied beginning in mid-April and continue in equal instalments for a year. Customers don’t need to apply as they are automatic.
The provincial government boasts that hydro rates have risen below the rate of inflation for six straight years, including in 2024, and Scott says “we are committed to keeping any future rate increases below cumulative inflation.”
Some customers may soon choose to pay for hydro in a different way. In June, B.C. Hydro will offer optional time-of-day pricing. Those who opt in would get a five-cent discount for using electricity during times of low demand (11 p.m. to 7 a.m.) and a five-cent surcharge for use during peak hours, 4 to 9 p.m. Rates would be unchanged at other times.
Time-of-day pricing might be attractive to those who own an electric vehicle, for instance, because they would be able to save by charging their car overnight.
B.C. Ferries
Ferry rates are due to increase by 3.2 per cent on April 1 as approved by the B.C. Ferry Commission. That does not apply to potential fuel surcharges or rebates, which the corporation may introduce or adjust based on fluctuating fuel prices.
That 3.2 per cent jump could have been much worse. B.C. Ferries was seeking a 9.2 per cent increase before the provincial government kicked in $500 million over the next four years to keep fares more affordable.
Also beginning on April 1, B.C. Ferries is more than doubling the number of people who can use its saver program by pre-booking and travelling during off-peak hours. Cancellation fees on prepaid and saver fares are dropping to allow passengers more flexibility. Customers can also save on fares by travelling together in one vehicle.
Beer and alcohol
The federal excise tax on alcohol, including beer, is set to rise two per cent on April 1. That tax increase has been capped at two per cent through 2026.
That too was originally going to go up more — by 4.7 per cent — before industry and public backlash led the federal government to reconsider and drop the amount of the tax increase.
Minimum wages
Those who work for the federal government are set to get a minimum-wage increase from $16.65 an hour to $17.30 on April 1. The increase is based on Canada’s consumer price index. This doesn’t mean a direct increase for consumers, but any salary increases affecting more than 350,000 workers — the 2023 estimate for the size of the federal public service — is likely to have an inflationary effect.
Similarly, the B.C. government announced another general minimum wage increase, based on the rate of inflation, from $16.75 to $17.40 an hour, though that doesn’t take effect until June 1.
Speaking of inflation, we all know prices have been rising for the past couple of years. The B.C. government estimates prices have gone up cumulatively by 13.9 per cent between early 2021 and early 2024.
The (somewhat) good news is that the rate has been falling since 2022, and the current year-over-year estimate is 2.6 per cent, down from 3.4 per cent in the previous year — but don’t tell that to anyone who’s had to fill their gas tank lately.
