CANADA, July 8 - In response to B.C.’s growing housing needs, BC Hydro has made changes to support faster, more affordable electricity connections for new homes and businesses throughout the province.
The changes, which took effect Saturday, July 5, 2025, are designed to streamline the connection process and reduce costs, particularly for residential developments.
“With more homes being built throughout B.C., people need fast, affordable access to power,” said Adrian Dix, Minister of Energy and Climate Solutions. “This policy change helps make that possible by cutting connection costs and simplifying the process. For example, the cost of a simple connection to a new single-family home has dropped by more than 90%, from over $800, and can now be as low as $64.”
The Distribution Extension Policy had been last updated in 2008 and required the first customer requesting an extension to pay the full cost of system upgrades. The updated policy spreads those costs more broadly, so customers no longer carry the full burden when future users also benefit from upgraded infrastructure. In addition, BC Hydro has increased its contribution to cover more of the cost of extending the electrical system.
“This update will make a real difference for families and builders,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “Lower connection costs and faster timelines mean it’s easier to build the homes people need, and to do it more affordably in communities around British Columbia.”
These changes are expected to support a wide range of housing developments. Savings on a 13-unit townhouse project, for example, could be approximately $16,000 under the updated policy.
“We commend the comprehensive engagement with the home-building industry on the updated Distribution Extension Policy,” said Neil Moody, CEO, Canadian Home Builders' Association of B.C. “Reducing upfront costs to get new homes connected to the electrical grid is a meaningful step to support home building across B.C.”
Through its 10-year capital plan, BC Hydro is investing almost $15 billion to reinforce the system, increase capacity and connect customers faster, including:
- construction of more than 50 new distribution feeders over the next five years, enough to power 200,000 new homes;
- installation of more than 250 kilometres of new underground infrastructure and upgrades to 14 substations; and
- development of dozens of transmission projects underway and planned to ensure long-term reliability.
“Connection requests are growing and have increased by 30% in recent years,” said Chris O’Riley, president and CEO, BC Hydro. “These policy changes, along with the many significant actions underway, will not only reduce costs and speed up timelines but will also help us meet B.C.’s housing goals and connect new and growing businesses faster.”
Quick Facts:
- BC Hydro’s updated Distribution Extension Policy applies to all new homes and business in B.C. that are connected to the utility’s distribution system, including those in remote and rural areas, but not to transmission customers.
- Areas that aren’t covered by BC Hydro’s updated Distribution Extension Policy are those served by FortisBC, including most of Kelowna, Penticton and the surrounding area, as well as the City of New Westminster and City of Summerland that have their own electrical utility divisions supplied by BC Hydro and FortisBC, respectively.
- The updated policy reflects input from extensive consultations BC Hydro held with industry, local governments and other stakeholders.
- BC Hydro is seeing more and more requests to connect to the grid, more than 40,000 each year.
- Connection requests have grown by 30% in recent years, mostly due to housing demand.
Learn More:
For more information about the updated Distribution Extension Policy, visit: bchydro.com/extensionpolicy
