AUMA Does Not Support Elimination of the Regulated Energy Rate Option
Wednesday, July 4, 2012 - 3:02 PM
By Meg Lupton
Last winter, energy rates spiked to historic highs and the Redford government promised an independent review to find ways to lower volatility.
The Retail Market Review Committe was then formed, and they held a handful of public hearing for people to come out and voice their opinion.
Consumer groups and some others have now raised a concern that the committee is getting a little off track - rather than finding answers on the price of power, those groups are worried there has been talks about getting rid of the regulated rate option all together.
AUMA Vice President Helen Rice says with the smaller boutique energy companies not able to compete with the larger corporations, not a whole lot of people have switched to contracts.
"When they did deregulation, it was assumed then that people would be able to switch, they would be able to price-shop for electricity. That simply hasn't happened. While there are some options out there, people have not switched in the volumes that were anticipated."
There is a long list of people that cannot apply for contracts, including new residents to the province, students and consumers with poor credit, so the regulated rate offers an option for those people says Rice.