Government risks re-regulating deregulated market; may improve affordability but stifles competition

The following statement about the Default Electricity Rate Legislation is attributable to Deborah Yedlin, President & CEO at the Calgary Chamber of Commerce:

“While we appreciate the Government of Alberta’s clarity on the default electricity rate and efforts to reduce utility price volatility, which may benefit small businesses, we are concerned this legislation undervalues the importance of competition, distorting the market and stifling competition within the electricity sector. We are concerned the two-year set electricity rate may negatively impact energy retailers and possibly generators, including new and legacy participants. The current rate structure is adjusted based on many factors, including weather and environmental conditions, supply and demand changes, and broader economic forces. A two-year rate may diminish the viability of some energy retailers’ ability to operate, which could strand investment in previously viable operations, decrease competition in the market, and result in significant job losses.

“At the same time, by legislating a two-year fixed rate for the newly named Rate of Last Resort, utility prices may be more stable and affordable for those who are on the default rate. This could put downward pressure on variable rate offerings from utility retailer and provide some relief to Calgary businesses, for whom 52.5 per cent cite rising costs as their primary concern. With small businesses disproportionately struggling with volatile and costly utilities, this change is potentially one step towards mitigating the ongoing cost pressures they currently face. We encourage the Government of Alberta to continue engaging with generators, retailers and consumers in the coming months to minimize the unintended consequences of this legislation.”

About the Calgary Chamber of Commerce  

The Calgary Chamber exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city. 

Media opportunities

For media opportunities, please contact media@calgarychamber.com.