Home-based business owners may get zapped with power rate increase
Hundreds of home-based business owners in Penticton may get zapped with power rate hikes that could cost them more than $200 per year.
Among them is Leslie Smith, a registered massage therapist who was stunned to receive a letter from the city dated Oct. 26 alerting her to the possible change. “My mind blew,” she said. “I’m absolutely astounded there hasn’t been a flood of letters to the editor.”
Her letter from the city explains council on Oct. 3 gave first reading to a new Electrical Utility Services Bylaw that formalizes two separate residential rates: one for regular dwellings and a special rate for homes in which a business is operated.
Power consumed in homes used for businesses would then be charged at a higher rate expected to add $17.40 per month to an average bill.
“That’s groceries for a week. That’s half a tank of gas,” said Smith, who’s limited by age and health concerns to working just four hours per week and would have to simply absorb the added expense.
She’s further concerned the rate would be applied to her low-energy business the same as it would be to a power hog working seven days a week.
“I think that each case should be adjudicated person-by-person, situation-by-situation, so that it’s equitable,” said Smith. “It’s not equitable as it sits.”
Electrical utility manger Shawn Filice in his presentation to council Oct. 3 explained the new bylaw is meant to clean up and consolidate many existing bylaws, one of them dating back to 1911.
The two residential rates, he continued, already exist on paper, but are not applied uniformly.
“Historically, my understanding is there was some discretion used in the utility services area, and I’ve stumbled across some services that were multi-unit apartment buildings that were special residential rate, other multi-unit residentials were regular residential rate, so there has been some inconsistency in practice in the past,” said Filice.
He later explained the special rate for home-based businesses is meant to reflect in general how they “use and require more of the infrastructure to supply them.”
Noting businesses licences would be used to ensure consistent application of the special rate class, Coun. Andre Martin suggested some people may go underground to avoid the extra cost.
“We’re trying to get these people to come here, and now we’re going to penalize them because they’ve set up a home-based business,” said Martin. “I hope we think this through, that’s all.”
Later in the meeting, however, council voted unanimously to send the matter out for public consultation ahead of planned second reading of the new bylaw in December.
City engagement officer Jo Anne Kleb said Friday that 444 customers such as Smith have received letters warning they could be shifted into the higher rate class, resulting in 30 calls and emails to staff.
Kleb cautioned nothing has been decided yet.
“We have an opportunity to address the inconsistent rates through the work on the bylaw. Staff are gathering this feedback and considering options that will be shared with council as part of the second reading,” she said in an email.
“Customers can go to www.shapeyourcitypenticton.ca for more information or to leave their feedback.
Kleb further noted recent automation of the city’s billing and licensing systems will eliminate past inconsistency in the application of different rate codes.