By The Canadian Press

Alberta introduces bill to levy fines as way to resolve utility overcharges

Apr 20, 2018 | 6:15 AM

EDMONTON – Alberta is making changes to resolve problems with power and natural gas bills.

Energy Minister Marg McCuaig-Boyd has tabled legislation that would allow electricity and gas providers to be penalized for late billing and overcharging.

The fines could be up to $10,000 a day.

The legislation would also give the Alberta Utilities Commission (AUC) more latitude to investigate quickly and to levy the fines.

Disputes currently need to go through formal hearings, which can be lengthy and cumbersome.

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The bill also aims to bring in new rules to align with Alberta’s shift to a capacity electricity market in 2021.

Proposed legislation would help stabilize electricity prices, while better protecting Albertans from incorrect power bills. 

If passed, An Act to Secure Alberta’s Electricity Future would better protect consumers by empowering the AUC to penalize electricity and natural gas service providers for breaches of customer service, such as sending out late bills or overcharging consumers.

Currently in Alberta, the only tool available to hold companies to account is a formal hearing process, which can be lengthy and costly. This legislation would allow the AUC to issue penalties, similar to a traffic ticket, to ensure all service providers are following the rules.    

If passed, the act would also:

— Increase investor confidence by providing policy and regulatory certainty by clarifying how infrastructure losses and profits are split between consumers and utility companies.
— Provide more options to Albertans who want to generate their own electricity from renewable or alternative sources.
— Enable the creation of a capacity market.

Creating a capacity market for electricity would protect consumers from price volatility and provide a reliable supply of power at stable, affordable prices. Currently, Alberta is one of only two jurisdictions in North America using an energy-only market. In this system, generators are paid for the electricity they produce based solely on the wholesale price of electricity, which fluctuates.

Moving to a capacity market allows for competition, innovation and private investment and was recommended by current and potential energy investors, external experts, consumer groups and the Alberta Electric System Operator (AESO), which oversees the province’s electricity in the interest of the public.