Province’s move to cap electricity rates a sign of mismanagement, MacIntyre says

EDMONTON – Electricity rates in Alberta would be capped under legislation the provincial government introduced Tuesday, a move it says will protect customers from major price spikes.

The government says the four-year cap of 6.8 cents per kilowatt hour is expected to be in place by June 1.

It estimates that increases in power rates above the cap would cost about $10 million a month per cent above the cap, which would be covered by revenue from the Alberta carbon tax.

Provincial electricity rates averaged about 3.9 cents per kilowatt hour between April 2016 and April 2017, but have spiked to as high as 15.3 cents per kilowatt hour in the past six years.

The government says about 60 per cent of consumers pay market rates, while others are on fixed-price contracts that have averaged 6.1 cents over the past year.

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“Volatility and uncertainty have been hallmarks of our electricity system for years. Electricity is a basic necessity and Albertans shouldn’t have to worry about their power bills spiking from one month to the next,” said Margaret McCuaig-Boyd, Minister of Energy.

Opposition members have criticized the government for what they say is moving too quickly on changing the power market.

“The vast majority of job creators in Alberta aren’t eligible for the RRO being capped under this Bill, and will bear the full cost of the NDP’s reckless electricity policies,” said Don MacIntyre, Innisfail – Sylvan lake MLA and Wildrose Shadow Electricity and Renewables Minister.

“The devastating impact of these decisions will risk further job losses in our province at a time of unprecedented economic uncertainty.”

In a release, MacIntyre likened the NDP’s mismanagement on the electricity file to “a bad re-run of the electricity disaster in Ontario.”

“The only thing the NDP learned from the disaster in Ontario is how to hide the high cost of an irresponsible transition to renewables.” MacIntyre said.

(With file from The Canadian Press, Wildrose media release)