Power bill challenge could prove costly

December 5, 2002

Power bill challenge could prove costly
New rule another example of consumers' lack of clout, says Chris Spearman

Dave Mabell

If your Epcor power bill is wrong, you'd better be careful about complaining. Alberta power bureaucrats warn they'll allow the electric utility to slap on penalties if your bill isn't 20 per cent too high.

And that's just another indication of how little clout Alberta electricity consumers have today, says power critic Chris Spearman of Lethbridge.

"These rules are consistently in favour of the companies," says Spearman, chairman of the Industrial Association of Southern Alberta. "It's a very one-sided process."

The Epcor warning - approved by the Alberta Energy and Utilities Board - came as the Calgary-based board opened its phone lines to Epcor customers through much of Alberta. Earlier, the board announced a $75 credit will be applied to any residential power bill (outside Edmonton) where the utility's bill is more than 20 per cent higher than actual consumption.

But now EUB spokesman Bob Curran says the City of Edmonton-owned power retailer can charge up to $75 for a meter reading if the Epcor customer's bills prove accurate after being disputed. Epcor's service area includes most of southern Alberta, excluding Lethbridge and a handful of towns that selected Enmax as their supplier.

Spearman says announcements of penalties and counter-penalties underline the many unresolved problems with the Tory government's decision to deregulated Alberta' power system. Since the province attempted to set up a competitive system in 2001, he says, consumers have consistently paid more for less.

"Service is significantly poorer and prices are significantly higher," he says.

As a result, Alberta consumers pay considerably more per kilowatt hour for their power than relatives elsewhere in Western Canada. On top of that, they're forced to pay transmission charges, rate riders, access fees and a host of other fees which are included in the cost of service in other provinces.

Spearman warns Albertans may soon be paying even more as some of the province's oldest power plants are retired. TransAlta Utilities has begun to shut down its 1950s plant at Wabamun Lake west of Edmonton, but - apart from new wind turbines in southwestern Alberta - very little new energy production is coming on stream.

Premier Klein promised many new power plants would be built once the province's system was deregulated, Spearman points out. Most have been postponed or cancelled.

"There are no signs of those 'benefits' of deregulation, nor any on the horizon."

Spearman says he's not surprised to hear the Tory government in Ontario backing away from deregulation - and now the British Columbia government as well.

"Deregulation has also stalled in the U.S.," he says.

As North American investors continue to lose faith in their market system, there's little interest in putting more power in private hands.

In the wake of those scandals, Spearman says many Lethbridge industries have learned their current power contracts won't be renewed because power brokers are leaving Alberta. Like homeowners, those business managers are finding there are few other choices.

After nearly two years of free enterprise "competition" in electricity retailing, Spearman says Alberta businesses are still at a significant disadvantage to their competitors in other provinces.

"There is no competition," he says. "We have a couple of big winners and millions of losers."