A day after releasing a damning report into how BC Hydro was being managed B.C.’s Energy minister is making big changes.

Michelle Mungall says there will be a two year transition period with regulatory and legislative changes coming to restore full BC Utilities Commission oversight of Hydro.

Mungall is also ending the rate smoothing account writing off its $1.1 billion balance limiting future rate hikes.

As for getting out of what she called a bad deal in long term contracts with independent Power Producers costing taxpayers billions?

“Going forward should we renew any of these contracts they need to be at market value. They cannot be at these inflated prices British Columbians deserve better than that.”

Mungall says hydro’s ‘Standing Offer Program’ has been suspended immediately.

The program allowed power producers to sell their electricity to hydro something the review found was a major failing.

“$25 a megawatt hour that is what we can sell it at. But we are buying it from these companies for $100 a megawatt hour. There is not way you can shake this that is a bad deal for British Columbians but a sweetheart deal for the companies.”

Pending BCUC approval hydro rates are set to increase 1.8% April 1st and another 0.7% next April.