Government Doing Nothing to Address Electricity Costs

Many people are talking about the outrageous price of electricity in Alberta. As we find out in this week’s Sherwood Park News, the PCs have promised a pre-election review and have said they will freeze ancillary costs until that review is over. Since the review will be short, but over after the election, this is just politics and not a solution.

Freezing ancillary fees for a short time is pointless unless you address the reasons why ancillary costs are increasing. Ancillary costs (such as transmission costs) are increasing because the government has authorized power companies to massively overbuild the power grid. As long as that over-build continues, and as long as the government foists the full costs of that overbuild onto consumers, there will be no way out for us and we will end up paying even more later on.

Ancillary electricity fees don’t need to just be frozen, they need to be reduced. The only way to reduce them is to stop building unnecessary transmission lines and to redesign the electricity pricing model so that consumers aren’t forced to pay the full cost of new transmission lines that are built.

When it comes to electricity costs, the PC government seems unwilling to do the things that would really make a difference.

~ by RETA on March 3, 2012.

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