April 26, 2013
Ferry Commissioners Amend Order to Reflect Coastal Ferry Services Contract Changes
The British Columbia Ferry Commission, the independent regulator of British Columbia Ferry Services Inc. (BC Ferries), has amended Order 12-02 to reflect the most recent changes to the Coastal Ferry Services Contract (CFSC) between BC Ferries and the provincial government.
Order 12-02 sets out the commission’s final decision on price caps for the performance term 2013 – 2016 (or PT3) and provides for service level adjustments which were expected to contribute $30 million to keeping the price cap lower than would otherwise be the case. To date, BC Ferries has achieved savings of $4 million during PT3.
On April 3, 2013, the CFSC was subsequently amended by the provincial government to increase the ferry transportation fee paid to BC Ferries by $7.1 million thereby reducing the aggregate net savings target from service level adjustments to $22.9 million. This leaves $18.9 million in additional net savings, to be identified by March 31, 2014, which must be realized by the end of PT3 (or by March 31, 2016).
BC Ferries may apply to the commission for relief under section 42(1) of the Coastal Ferry Act if it is unable to meet these targets by the timelines set out in the CFSC.
Click here for the British Columbia Ferry Commission Order 12-02A on the commission’s amending Order 12-02.
Click here for the Coastal Ferry Services Contract PT3 Amending Agreement No. 1.