Electricity Regulation (November 21)

Mr. Hehr: Over 10 years ago this government decided to deregulate electricity. The promise of better service and lower costs to consumers never happened.

This change has led to significantly higher energy prices and unstable, unpredictable markets. My question is for the Minister of Energy. How is it that every time you promise lower prices, our electricity bills continue to grow?

Dr. Morton: Mr. Speaker, as usual the hon. member is about half right and half wrong. It is true that prices for electricity have increased since January – I’m happy to explain the reasons why – but if you compare Alberta to other nonhydro-dependent electrical systems, we are in the middle of the pack and very competitive.

Mr. Hehr: Well, given that five electricity producers control 70 per cent of the market and that the Market Surveillance Administrator identified over 46 violations of market manipulation in the past year, why aren’t you defending Alberta consumers?

Dr. Morton: Mr. Speaker, I’m happy to report that just recently the Market Surveillance Administrator did identify an irregularity in one generator’s practice, investigated, found there was an irregularity, and has negotiated with the company and imposed both a fine and a payback to the pool to make up for that transgression. So the system is working.

Mr. Hehr: Do you really think that a $125,000 fine for causing 5 and a half million dollars in damage is an appropriate fine? Is that what I’m hearing from the minister?

Dr. Morton: Mr. Speaker, the hon. member has a wonderful imagination in coming up with imaginative figures in terms of total damage, but I can assure you that if there is a problem with the fine and the compensation, the decision made by the Market Surveillance Administrator goes to the Alberta Utilities Commission, which has the final word on the appropriateness of the penalty.

Alberta Hansard, November 21, 2011

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