News Release, March 31, 2011:
BC Ferry Commissioner Makes Preliminary Ruling on Fares for the Third Performance term
Every four years, the BC Ferry Commissioner sets price caps for BC Ferries, i.e. the maximum allowed average fare levels that BC Ferries is permitted to charge. His preliminary ruling published today applies to fares for the four years starting April 1, 2012, and continuing through March 31, 2016. The preliminary ruling is to allow an increase of:
- 4.15% per year on the three Major routes numbered 1, 2 and 30 (between the Lower Mainland and Vancouver Island) and Route 3 (Horseshoe Bay-Langdale).
- 8.23% per year on the 221 other routes in the Northern and Minor route groups.
These preliminary figures have been arrived at based on information provided to the Commission by BC Ferries, which included a 6-year cost projection for operations, a 6- year capital plan, a traffic forecast and additional information requested by the commission. The decision assumes no change in ferry service levels, in total provincial service fees or in the Federal subsidy contract.
After reviewing the material provided by BC Ferries, the Commission has elected to reduce allowable costs and to challenge BC Ferries to make further productivity improvements to achieve a total $18.5 million reduction in annual operating and amortization expenditures. This has been factored into the preliminary price caps. Until April 30, BC Ferries will be able to make submissions to the Commission to seek restoration of a portion of this reduction, to identify any alternative productivity improvements or to propose new opportunities for efficiency or new sources of revenue.
Submissions will be posted to the Commission website for public comment.
The public is invited to comment by June 30 on the Commission's 19-page preliminary price cap ruling, on BC Ferries' submissions, on BC Ferries' annual and quarterly reports, and other materials, which can be found on the commission's web site at bcferrycommission.com
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Established under the Coastal Ferry Act in April 2003, the BC Ferry Commissioner is the independent regulator of BC Ferries.
Contact Martin Crilly, BC Ferry Commissioner at 250-339-2714 or
martin.crilly@bcferrycommission.com