Market markups biggest factor in sky high power prices: U of C report | Mayerthorpe Freelancer

The university’s School of Public Policy published a report on the increasing rates of electricity Wednesday morning, showing the wholesale price rose to over $105 per MW-h in 2021, up from $48 per MW-h the year before.

Other factors driving up the price include increased demand, adding $10 per MW-h, and a jump in the cost of natural gas prices, contributing $7 per MW-h.

Basically, three big firms controlled 90 per cent of the market, and that clearly wouldn’t be a competitive landscape,” said Shaffer.

“I can assure you that every conversation that I have with the premier and cabinet starts and finishes with affordability and how can we make life cheaper,” said Nally.

The government announced earlier this year that Albertans would be protected from any natural gas prices that exceed $6.50 per gigajoule between October 1, 2022, and March 31, 2023.

Nally tabled Bill 18, the Utility Commodity Rebate Act, that if passed would allow the government to replace legislation that does not currently allow for rebates on electricity bills.

“This government has gone overtime to try to blame everybody else and everything else, but this really is a function of the changes that they’ve made.

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