Faced with record high electricity prices in January and February, Premier Alison Redford appointed a four-member panel to examine consumers’ cost for the commodity, March 22.
Redford has also promised to freeze ancillary costs – including distribution and transmission charges – on monthly power bills.
“Albertans pay, on average, about the same for electricity as people in most other provinces,” said Ted Morton, minister of Energy and MLA for Foothills-Rocky View. “However, our prices do fluctuate from month-to-month for those who are not on a fixed-rate contract, and sometimes quite significantly. We recognize the volatility of the variable rate is a concern for many families, and it is a concern for government.”
Currently, about 70 per cent of Albertans pay the variable rate for their electricity, a cost which soared to 15 cents per kilowatt hour in January, twice that of the previous January.
According to Mike Berezowsky, Service Alberta spokesperson, in recent months there have been a lot more people calling the department concerned about electricity prices. He said those prices, which are governed by market forces, are likely on the decline after the winter highs.
“The regulated rate is set every month and it is determined by supply and demand,” he said. “(The panel) is a good step towards looking into the price.”
According to Berezowsky, the Utilities Consumer Advocate, which is an arm of Service Alberta, will make a presentation on behalf of consumers to the independent panel. The committee members will also consider expert advice from electric distribution owners, electric retailers and associations representing municipalities.
Individual consumers will also have an opportunity to provide input directly through an online survey, details of which will be made public in May, according to a statement released by Redford.
The committee, which will make its recommendations to government by early summer, will be chaired by Utilities Consumer Advocate Advisory Board member Ted Pound.
It will also include Dr. C.R. (Sid) Carlson, an energy and environmental policy consultant; Rick Cowburn, who has more than 25 years of experience in the electric and water industries; and Nat Treadway, a founding member of Distributed Energy Financial Group LLC.
The committee has also been tasked with a review of whether Alberta should use a default rate, and if needed, discuss ways it could be better designed and delivered. It will also look at the all-in cost of electricity and consider how charges other than energy use are determined and approved for payment by consumers.
“The current system has been in place for more than a dozen years and has worked well,” said Morton. “But like with any long-running program, we believe there is room for improvement, and we want to find it.”
Airdrie-Chestermere MLA Rob Anderson is cynical about the announcement, saying the premier is “obsessed” with review panels.
“I don’t know why you need a panel to figure this out,” said Anderson.
“(Wildrose) has a more simple solution: recall Bill 50 if you want to bring down power prices.”
Anderson added the issue of Alberta’s volatile prices is a hot topic for his constituents.
“It is a huge issue,” he said. “Power bills are going through the roof and (my constituents) don’t understand it. It is not a truly competitive market, there are all kinds of problems with it. It needs to be altered and changed so it is fair for consumers.”
