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Although the B.C. government promised that it would not put B.C. Hydro on the chopping block, they are currently in the process of privatizing three key components of the utility – Customer Service, Fleet Services and Westech.

Although the B.C. government promised that it would not put B.C. Hydro on the chopping block, they are currently in the process of privatizing three key components of the utility – Customer Service, Fleet Services and Westech.

Consumer watchdogs fear that the privatization will not end there, but will progress until the hydro market is completely private.

The main case made in favour of the privatization of utilities – aside from the fact that public utilities are being recognized as illegal monopolies under many international trade agreements – is that it will lead to more competition, and more competition will lead to innovation, economic growth, and lower prices for consumers.

Supporters of privatization also claim that the environment will benefit, as smaller companies are better able to adopt new technologies, and work hard to meet whatever regulations are created to govern them.

When the B.C. government announced plans to gradually phase out its involvement in the liquor distribution business, Rick Thorpe, the Minister of Competition, Science and Enterprise commented that the government brings no special talent to the task of liquor distribution.

But when it comes to utilities, you could argue that the private sector doesn’t bring any special talents, either.

For decades, B.C. Hydro has been supplying affordable power to residents, building the infrastructure and servicing remote areas. They have managed to freeze hydro rates for consumer for the past eight years, consistently meeting power demands with enough left over to export, and still manage to generate close to a billion in revenue for the government every year.

At the same time, B.C. Hydro provides thousands of B.C.’ers with well-paid and secure jobs. The workers are generally excellent, and even in the worst winter conditions, communities can rely on B.C. Hydro to keep the grid up and running.

B.C. Hydro is arguably a leader in the environmental category as well with some truly innovative ideas to increase the quantity and quality of green power projects. Although it’s still fairly new, B.C. Hydro’s PowerSmart program is already a huge success, partnering with large operations like the Chateau Whistler to create mutually beneficial programs that either improve energy efficiency or create more green power.

The private sector does not have this kind of track record.

So far the privatization experiment in Ontario has been a disaster for ratepayers, small business and industry. Rates have increased by approximately 60 per cent compared to the previous year, and prices have fluctuated wildly.

The situation has become so worrisome that the government is fast-tracking hydro rebate payments, and a member of the Legislature tabled a Private Member’s Bill that would make it illegal for hydro providers to cut off power between October and May for a failure to pay bills. People on limited or fixed incomes, such as senior citizens, were hardest hit, and many are claiming that they can’t afford the new rates.

The Conservative government is attributing the high prices to growing pains and a market adjustment – they believe things will stabilize given enough time.

Similar rate hikes have also occurred in the States as a result of privatization, and private sector companies in California have been accused of staging or exaggerating last year’s power crisis with all the rolling blackouts and brownouts in order to raise their rates and push forward approvals for new facilities.

Private power companies are also in bed with other resource companies, notably those in the fossil fuel business, As a result, power companies are pushing ahead with unpopular plans to build coal and oil power plants in Mexico, if necessary, to meet demands. The oil companies are similarly using the power crisis to justify unpopular projects of their own, including drilling in a wildlife reserve in Alaska.

Privatization also contributed to the whole Enron fiasco, which along with the WorldCom, Tyco, Arthur Anderson, Halliburton and Martha Stewart fiascos, are fairly indicative of the kind of problems that have been found to exist in the private sector.

Based on those cases, our unstable economy, and the fact that the stock market is running itself into the ground these days, it just doesn’t make sense to privatize now.

There are also specific concerns that Accenture – the Bermuda-based company that was chosen by government from 17 other competing companies to manage the privatized functions of B.C. Hydro – is less than upstanding.

The company was barred from California by the state treasurer for "questionable business practices" – specially for relocating to an offshore tax haven. Last year the Ontario Auditor General slammed the company for massive cost over-runs in a deal to take over that province’s welfare program – while they achieved $89.5 million in savings, their services cost the Ontario government $193 million. Other States have made similar claims of Accenture in the past.

"How can British Columbian’s best interests be met by a company with a history of cost overruns that relocates its headquarter in Bermuda to avoid taxes and legal responsibilities?" asked Rudy Lawrence, a spokesperson for the B.C. Citizens for Public Power, and President of the Council of Senior Citizens’ Organizations.

Good question.

A growing number of voices are opposing B.C. Hydro privatization, arguing that the best way to control and regulate the utility, protecting consumers in the process, is to keep it in public hands – once you go down the road to privatization, there’s no going back.

The Union of B.C. Municipalities is one group that is overwhelmingly against the deregulation of electricity in B.C. Read their opinions on the topic here – www.energyaware.bc.ca.

Another is the B.C. Citizens for Public Power (BCCPP) at www.citizensforpublicpower.ca .

Another is a site by the Office & Professional Employees’ International Union at www.handsoffhydro.com .

Hands Off Hydro and the BCCPP have taken out newspaper ads and are in the process of launching a class action law suit against the B.C. Government for "Breach of Fiduciary Duty," which suggests that the government breached its obligations to taxpayers and customers by acting without our consent as stakeholders in the public utility; "Breach of Contract" for taking away the public’s return on its investment in B.C. Hydro; and "Unjust Enrichment," which basically implies that the government is allowing a private company to profit from an infrastructure that was built by taxpayers and customers.

To get involved, visit the sites, sign the petitions, write members of the Legislature, and, if so included, join the law suit.