BC Ferries would cap fare increases at 9.2 percent annually over the next four years, if a preliminary decision released today is finalized.
Commissioner Eva Hage says that the increase is necessary to allow BC Ferries to meet forecasted demands in the next term.
She says that a proposed 12 year, $5.2 billion capital plan centered around replacing ageing vessels will create significant financial pressure.
Rising fuel and maintenance costs, and labour challenges are also contributing factors in the price cap for their next 4 year performance period.
It marks a steep increase over the 2.3 and 1.9 percent price caps from the previous two performance periods.
But, the preliminary decision does not yet factor in a recently announced $500 million funding boost from the Province.
Announced last month, the investment is intended to keep annual fare increases below 3 percent.
It will be factored into the final decision, which is expected on September 30th.
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