Lowering the “doom”

By John Allemang, Globe and Mail


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Changing our climate for the worse? That's the easy part. But changing human minds and behaviour — that turns out to be much, much harder.

No matter how much confidence scientists have in the truth of their global warnings, getting the message out to the folks who are actually wrecking the planet has proved to be a far more challenging proposition. Cars still jam the streets, energy consumption increases, polluters sow doubt and denial and, as the Copenhagen summit on climate change nears, politicians still prevaricate as if there were an endless succession of tomorrows.

While there may well be an apocalypse looming on the far horizon, dire prophecies just don't cut it in the here-and-now of consumer culture. So forget the grim 100-year predictions for a second. The crisis at this very moment seems more like a crisis of communication.

Even the chair of the David Suzuki Foundation, James Hoggan, agrees: "Whether it's the scientific community, environmental groups, politicians, the media or business leaders, we haven't done a great job of conveying accurate scientific information to the public on the risks of climate change — or, indeed, of even conveying what climate change is."

Over the decades the climate-change war has been waged, many tactics used to soften up the masses have been unproductive at best and downright discouraging at worst. Even if you believe doomsday is coming, is it really such a good idea to talk it up and wallow in the death and destruction that will result if we don't change our awful ways and acknowledge Al Gore's inconvenient truth?

Such pessimistic predictions may have seemed effective as a way of winning attention (and the Nobel). But if the goal is to motivate people to useful action, say those who are experienced in environmental communication, it calls for something new.

"People have a finite capacity for worry," says Mr. Hoggan, the author of Do the Right Thing: PR Tips for a Skeptical Public . "When you overwhelm people with catastrophe, you don't actually engage them — you just produce an emotional numbness."

That's an intellectual evolution that Mr. Suzuki himself has gone through. His widely viewed TV series The Nature of Things once tended to depict nature as a beautiful pristine thing that bad humans habitually destroyed. Even now, his enemies feel able to undermine his mainstream scientific views by dismissing him as a merchant of doom.

Yet the current incarnation of Mr. Suzuki, in keeping with his foundation's communication techniques, has shifted from the dependable jeremiads of old to a message of everyday hope and more immediate usefulness. Last year, he co-wrote David Suzuki's Green Guide, a book that comes to grips with climate change through small-scale lifestyle adjustments such as biodegradable carpeting and energy-efficient appliances.

"I believe that one has to keep warning [that] the signs are there, the science is in," Mr. Suzuki said when the book came out. "But I realized years ago that you can get people to respond to fear, but you can't sustain it, because it's too soul-destroying."

So what will people respond to when fear doesn't do it? Mark van Vugt is a psychologist who teaches at VU University Amsterdam, and he's part of an emerging group of cognitive scientists studying the sometimes uneasy relationship between climate-change messaging and the workings of the brain.

He says the announcements to be made by global leaders in Copenhagen are of much less consequence than the decisions that are being shaped in the complex minds of ordinary human beings.

"It's very hard to look at a climate-change conference as a primary driver of individual behaviour," Dr. van Vugt says. "Copenhagen is about political solutions, but the environmental issues remain inherently uncertain for most people. So what we have to do is translate these issues into something meaningful at the individual level."

Acquiring information is the basic way the brain deals with uncertainty, and with a subject as complex and contested as long-term climate change, Dr. van Vugt believes the best approach is to localize the discussion: Make it less about far-off glaciers, because people find it hard to cope with a problem they can't easily influence, and more about local parks, forests or air quality.

Any kind of message for change, he believes, must focus on personal identity and our need to belong: "We're influenced by significant others and want to look good to our neighbours and friends."

So a good way to persuade people to reduce electrical consumption is to let them compare their rates with the rest of the community: Have utility bills award a smiley face to those whose consumption is lower than their neighbours and a frowning face to those who are profligate. People then will reduce without any other external motivator, Dr. van Vugt says.

But good behaviour at the individual level won't last if institutional behaviour is untrustworthy — environmental groups must not overstate a threat; scientists can't be seen to adjust data, even in a good cause (as researchers from the International Panel on Climate Change were recently accused of doing); businesses must not act as though they're a law onto themselves; and governments can't preach one thing and then do another.

"Suppose it turns out that the recyclables and organics we've been sorting and separating are just being tossed into one big garbage heap — well, that's a recipe for disaster," Dr. van Vugt says. "You've created goodwill only to destroy it."

While environmentally friendly behaviours are often presented as something altruistic and selfless, he suggests that incentives are key to any successful strategy. "Our primary motivation is to get ahead of others, to see ourselves rewarded for good behaviour while bad behaviour gets punished." So it doesn't hurt to awaken some of this potential goodness by, say, offering a free bus pass for those prepared to be wooed to public transit.

At the same time, it's useful to make green products more luxurious rather than crafting an image of asceticism and self-conscious suffering. "A nice, well-made mountain bike can cost as much as a car and may become a status symbol for just that reason," Dr. van Vugt says. This is what psychologists refer to as signaling potential: Look at me, I'm green and rich and sexy.

Orthodox environmentalists may shudder at the thought, and question the ability of sexy status symbols to stop the seas from rising. Yet the attractiveness of self-denial has proved to be a hard sell to those used to the comforts of our present wastefulness.

"The evidence so far is profoundly against the notion of sacrifice as a success strategy," designer Bruce Mau says. "We've been saying for decades, 'Get out of your cars,' but in not one of those years have there been fewer cars."

For Mr. Mau, solving the problems of climate starts with smart design — carpeting with its own 1-800 number that you call when it needs recycling, a Tesla electric car that looks more beautiful than a Ferrari, and buses that come with cup holders so you don't feel like you're downgrading quite so much from your car.

"If you describe a sustainable future in negative terms," he says, "and if you highlight what it's going to cost them, people aren't going to move there. Doom-and-gloom is a dead end."

The beauty of sustainability has an undeniable appeal. But between the aesthetics and the ascetics of climate change, there's still a lot of room to manoeuvre. A considerable amount of public goodwill was arguably wasted by the campaign to switch from incandescent bulbs to stylish compact fluorescents, a relatively low-impact improvement.

Those who listened attentively to the noisy messaging that promoted the switch to the compact fluorescents may well feel like their effort was wasted — and their commitment could be harder to summon for a more significant shift, such as reducing beef consumption by half. Politicians, after all, fear beef-industry interests, while the incandescent-bulb lobby is relatively powerless.

As the director of the Center for Climate Change Communication at George Mason University in Virginia, Edward Maibach has studied the diverse effects of environmental messaging. He is convinced that changing human behaviour isn't as challenging as many people — certainly many politicians — now believe.

He can tell you from his polling data that when people are asked about changing their behaviour and reducing energy use in response to climate change, 40 per cent of those surveyed report it had no negative impact on their lives — and 30 per cent actually say it improved their quality of life.

From this, he concludes that "there's a collectivist spirit out there that's waiting to be reactivated. People are waiting to be asked to sacrifice. By and large, politicians are fearful about doing the right thing about greenhouses gases because they think they'll be thrown out of office. Yet we've shown that for every one person who'll get upset if you reduce emissions, two and a half will stand up and applaud."

Political leaders who resist the gospel of self-sacrifice like to talk instead about lucrative opportunities — all those Obama-esque "green jobs" to be found in building solar panels and wind farms, retrofitting drafty houses and remaking cities for public transit while (bonus points here) ending dependence on foreign oil.

They don't bother pointing out that our democracy-driven tentativeness has allowed a more decisive China to begin setting itself up as the leading producer of wind energy, solar-panel equipment and electric vehicles.

While waiting for our politicians to see the light, Dr. Maibach encourages citizens to take actions that make green behaviour appear to be the rule, not the exception. Individuals will give up in despair if they think they're engaged in a thankless task of changing the world on their own.

Hope and optimism come from a public display of commitment — Dr. Maibach cites simple school-based programs where parents ask fellow parents not to idle their cars while waiting for their children, explain the reasoning behind their request and perhaps offer a stick-on decal to those who will take the non-idling pledge.

He says the public pledge by itself makes it three times more likely that potential do-gooders will follow through on their good intentions. And from creating that kind of group effect, it then becomes easier to change public policy. "Once you can develop this behaviour and show it to be the social norm, it enables politicians to change the laws more easily."

That is certainly a tactic the David Suzuki Foundation is turning to in its messaging, especially as the Stephen Harper government has shied away from a commitment to environmentalists' cause. The foundation aims to work with government in a non-partisan way, and yet Mr. Hoggan says that when he goes to Copenhagen, "I'm going to tell the media exactly what I think about our government's failure on climate change."

Though the Prime Minister purports to speak for Canada, polls show that a majority of Canadians want stronger action from the government, and this allows groups such as the David Suzuki Foundation to appropriate the Team Canada brand — drawing attention to the negative international response Canada's policies generate internationally (Canadians hate being seen as bad guys) while featuring concerned athletes on the Suzuki website who will challenge Conservative climate policies from an educated-jock perspective (global warming means cancelled ski races).

And thus the Canadian environmental movement, far from being marginal or radical, is seen at its most patriotic and mainstream.

All these feel-good tactics may be useful in garnering more widespread support. But will they genuinely be effective in combating climate change?

The Young Greens of the Green Party don't seem to think so. They recently mounted a more outraged and outrageous 1960s-style campaign, with the support of Green Party Leader Elizabeth May, that used the attention-getting slogan, "Your parents f*cked up the planet — it's time to do something about it. Live green, vote Green."

So it's not all happy faces out there. David McKnight, a journalism professor at the University of New South Wales, criticizes environmentalists for being "a rather elite movement, aimed at symbolic actions to attract media attention and at lobbying government."

He believes (and many in the environmental movement would agree) that the most effective messaging will come from a broader-based movement, similar to the anti-war campaign of the 1960s, that puts hundreds of thousands of people on the streets.

Milan Ilnyckyj, an Ottawa-based blogger on environmental issues, argues that there should be a greater focus on the issue of morality, which is to say immorality.

"If we can accept that climate change causes harm to current and future generations," he writes, "the argument that polluters have some right to keep behaving as they have in the past weakens considerably."

Echoing that thought, William Rees of the University of British Columbia's School of Community and Regional Planning suggests that the international community should develop ways to prosecute governments for criminal negligence on environmental issues.

Still, even this approach presupposes that science and politics in the end can speak the same language. And that's an assumption that doesn't sit well with Kevin DeLuca, a professor of communications at the University of Utah.

"The raison d'être of science is doubt," he says. "But doubt is fatal in politics." Doubt opens the doors for debate about climate change, and endless debate prolongs inaction indefinitely.

Environmentalists look for ways to appeal to a mass audience, and come up with an upbeat message about satisfying self-interest and feeling good. "And so you end up with a spirit-of-the-apocalypse message veiled in a 'don't worry, be happy' conclusion," Prof. DeLuca notes.

He has no confidence in such a contrivance and, unlike most environmentalists, he says he can't put on a happy face even if strategy seems to demand it.

"The problem with the happy-face message is that the future isn't going to be happy. The Earth can get along without people - people can't get along without the Earth."

But that's a message no one wants to hear.

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Ontario Providing Support for Industrial and Commercial Electricity Consumers During COVID-19

Ontario Global Adjustment Deferral provides COVID-19 relief to industrial and commercial electricity consumers, holding GA charges at pre-COVID levels, aligning Class A and Class B rates, and deferring non-RPP costs from April to June 2020.

 

Key Points

An emergency measure that defers a portion of GA charges to stabilize electricity bills for non-RPP Class A/B consumers.

✅ Holds GA near pre-COVID levels at $115/MWh for Class B.

✅ Applies equal percentage relief to Class A customers.

✅ Deferred costs recovered over 12 months from Jan 2021.

 

Through an emergency order passed today, the Ontario government is taking steps to defer a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan for the period starting from April 2020, at a time when Toronto's growing electricity needs require careful planning. This initiative is intended to provide companies with temporary immediate relief on their monthly electricity bills, as utilities use AI to adapt to shifting electricity demands in April, May and June 2020. The government intends to keep this emergency order in place until May 31, 2020, and subsequent regulatory amendments would, if approved, provide for the deferral of these charges for June 2020 as well.

This relief will prevent a marked increase in Global Adjustment charges due to the low electricity demand caused by the COVID-19 outbreak. Without this emergency order, a small industrial or commercial consumer (i.e., Class B) could have seen bills increase by 15 per cent or more. This emergency order will hold GA rates in line with pre-COVID-19 levels, even as clean energy initiatives in British Columbia accelerate across the sector.

"Ontario's industrial and commercial electricity consumers are being impacted by COVID-19. They employ thousands of hardworking Ontarians, and we know this is a challenging time for them," said Greg Rickford, Minister of Energy, Northern Development and Mines. "This would provide immediate financial support for more than 50,000 companies when they need it most: as they do their part to stop the spread of COVID-19 and as they prepare to help get our economy moving again with Toronto preparing for a surge in electricity demand in the years ahead."

Quick Facts

  • The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value, alongside efforts to develop IoT security standards for electricity sector devices today. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.
  • Subject to the approval of subsequent amendments, deferred costs would be recovered over a 12-month period beginning in January 2021, amid increasing exposure to harsh weather across Canadian grids.

 

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Hot Houston summer and cold winter set new electricity records

US Electricity Demand 2018-2050 projects slower growth as energy consumption, power generation, air conditioning, and electric heating shift with efficiency standards, commercial floor space, industrial load, and household growth across the forecast horizon.

 

Key Points

A forecast of US power use across homes, commercial space, industrial load, and efficiency trends from 2018 to 2050.

✅ 2018 generation hit record; residential sales up 6%.

✅ Efficiency curbs demand; growth lags population and floor space.

✅ Commercial sales up 2%; industrial demand fell 3% in 2018.

 

Last year's Houston cold winter and hot summer drove power use to record levels, especially among households that rely on electricity for air conditioning during extreme weather conditions.

Electricity generation increased 4 per cent nationwide in 2018 and produced 4,178 million megawatt hours, driven in part by record natural gas generation across the U.S., surpassing the previous peak of 4,157 megawatt hours set in 2007, the Energy Department reported.

U.S. households bought 6 percent more electricity in 2018 than they did the previous year, despite longer-term declines in national consumption, reflecting the fact 87 percent of households cool their homes with air conditioning and 35 percent use electricity for heating.

Electricity sales to the commercial sector increased 2 percent in 2018 compared to the previous year while the industrial sector bought 3 percent less last year.

Going forward, the Energy Department forecasts that electricity consumption will grow at a slower pace than in recent decades, aligning with falling sales projections as technology improves and energy efficiency standards moderate consumption.

The economy and population growth are primary drivers of demand and the government predicts the number of households will grow at 0.7 percent per year from now until 2050 but electricity demand will grow only by 0.4 percent annually.

Likewise, commercial floor space is expected to increase 1 percent per year from now until 2050 but electricity sales will increase only by half that amount.

Globally, surging electricity demand is putting power systems under strain, providing context for these domestic trends.

 

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Ontario’s Electricity Future: Balancing Demand and Emissions 

Ontario Electricity Transition faces surging demand, GHG targets, and federal regulations, balancing natural gas, renewables, battery storage, and grid reliability while pursuing net-zero by 2035 and cost-effective decarbonization for industry, EVs, and growing populations.

 

Key Points

Ontario Electricity Transition is the province's shift to a reliable, low-GHG grid via renewables, storage, and policy.

✅ Demand up 75% by 2050; procurement adds 4,000 MW capacity.

✅ Gas use rises to 25% by 2030, challenging GHG goals.

✅ Tripling wind and solar with storage can cut costs and emissions.

 

Ontario's electricity sector stands at a pivotal crossroads. Once a leader in clean energy, the province now faces the dual challenge of meeting surging demand while adhering to stringent greenhouse gas (GHG) reduction targets. Recent developments, including the expansion of natural gas infrastructure and proposed federal regulations, have intensified debates about the future of Ontario's energy landscape, as this analysis explains in detail.

Rising Demand and the Need for Expansion

Ontario's electricity demand is projected to increase by 75% by 2050, equivalent to adding four and a half cities the size of Toronto to the grid. This surge is driven by factors such as industrial electrification, population growth, and the transition to electric vehicles. In response, as Ontario confronts a looming shortfall in the coming years, the provincial government has initiated its most ambitious energy procurement plan to date, aiming to secure an additional 4,000 megawatts of capacity by 2030. This includes investments in battery storage and natural gas generation to ensure grid reliability during peak demand periods.

The Role of Natural Gas: A Controversial Bridge

Natural gas has become a cornerstone of Ontario's strategy to meet immediate energy needs. However, this reliance comes with environmental costs. The Independent Electricity System Operator (IESO) projects that by 2030, natural gas will account for 25% of Ontario's electricity supply, up from 4% in 2017. This shift raises concerns about the province's ability to meet its GHG reduction targets and to embrace clean power in practice. 

The expansion of gas-fired plants, including broader plans for new gas capacity, such as the Portlands Energy Centre in Toronto, has sparked public outcry. Environmental groups argue that these expansions could undermine local emissions reduction goals and exacerbate health issues related to air quality. For instance, emissions from the Portlands plant have surged from 188,000 tonnes in 2017 to over 600,000 tonnes in 2021, with projections indicating a potential increase to 1.65 million tonnes if the expansion proceeds as planned. 

Federal Regulations and Economic Implications

The federal government's proposed clean electricity regulations aim to achieve a net-zero electricity sector by 2035. However, Ontario's government has expressed concerns that these regulations could impose significant financial burdens. An analysis by the IESO suggests that complying with the new rules would require doubling the province's electricity generation capacity, potentially adding $35 billion in costs by 2050, while other estimates suggest that greening Ontario's grid could cost $400 billion over time. This could result in higher residential electricity bills, ranging from $132 to $168 annually starting in 2033.

Pathways to a Sustainable Future

Experts advocate for a diversified approach to decarbonization that balances environmental goals with economic feasibility. Investments in renewable energy sources, such as new wind and solar resources, along with advancements in energy storage technologies, are seen as critical components of a sustainable energy strategy. Additionally, implementing energy efficiency measures and modernizing grid infrastructure can enhance system resilience and reduce emissions. 

The Ontario Clean Air Alliance proposes phasing out gas power by 2035 through a combination of tripling wind and solar capacity and investing in energy efficiency and storage solutions. This approach not only aims to reduce emissions but also offers potential cost savings compared to continued reliance on gas-fired generation. 

Ontario's journey toward a decarbonized electricity grid is fraught with challenges, including balancing reliability, clean, affordable electricity, and environmental sustainability. While natural gas currently plays a significant role in meeting the province's energy needs, its long-term viability as a bridge fuel remains contentious. The path forward will require careful consideration of technological innovations, regulatory frameworks, and public engagement to ensure a clean, reliable, and economically viable energy future for all Ontarians.

 

 

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Canadian Electricity Grids Increasingly Exposed to Harsh Weather

North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.

 

Key Points

North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.

✅ Extreme heat and cold drive record demand and resource strain.

✅ Balance dispatchable and intermittent generation for resilience.

✅ Expand interconnections, capacity, and demand response to avert outages.

 

The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.

Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.

“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.

“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”

The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.

In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).

AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.

Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.

Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.

“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”

The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.

While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”

Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.

Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.

“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.

However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.

“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.

 

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Britons could save on soaring bills as ministers plan to end link between gas and electricity prices

UK Electricity-Gas Price Decoupling aims to reform wholesale electricity pricing under the Energy Security Bill, shielding households from gas price spikes, supporting renewables, and easing the cost-of-living crisis through market redesign and transparent tariffs.

 

Key Points

Policy to decouple power prices from gas via the Energy Security Bill, stabilizing bills and reflecting renewables

✅ Breaks gas-to-power pricing link to cut electricity costs

✅ Reduces volatility; shields households from global gas shocks

✅ Highlights benefits of renewables and market transparency

 

Britons could be handed relief on rocketing household bills under Government plans to sever the link between the prices of gas and electricity, including proposals to restrict energy prices in the market, it has emerged.

Ministers are set to bring forward new laws under the Energy Security Bill to overhaul the UK's energy market in the face of the current cost-of-living crisis.

They have promised to provide greater protection for Britons against global fluctuations in energy prices, through a price cap on bills among other measures.

The current worldwide crisis has been exacerbated by the Ukraine war, which has sent gas prices spiralling higher.

Under the current make-up of Britain's energy market, soaring natural gas prices have had a knock-on effect on electricity costs.

But it has now been reported the new legislation will seek to prevent future shocks in the global gas market having a similar impact on electricity prices.

Yet the overhaul might not come in time to ease high winter energy costs for households ahead of this winter.

According to The Times, Business Secretary Kwasi Kwarteng will outline proposals for reforms in the coming weeks.

These will then form part of the Energy Security Bill to be introduced in the autumn, with officials anticipating a decrease in energy bills by April.

The newspaper said the plans will end the current system under which the wholesale cost of gas effectively determines the price of electricity for households.

Although more than a quarter of Britain's electricity comes from renewable sources, under current market rules it is the most expensive megawatt needed to meet demand that determines the price for all electricity generation.

This means that soaring gas prices have driven up all electricity costs in recent months, even though only around 40% of UK electricity comes from gas power stations.

Energy experts have compared the current market to train passengers having to pay the peak-period price for every journey they make.

One Government source told The Times: 'In the past it didn’t really matter because the price of gas was reasonably stable.

'Now it seems completely crazy that the price of electricity is based on the price of gas when a large amount of our generation is from renewables.'

It was also claimed ministers hope the reforms will make the market more transparent and emphasise to consumers the benefits of decarbonisation, amid an ongoing industry debate over free electricity for consumers.

A Government spokesperson said: 'The high global gas prices and linked high electricity prices that we are currently facing have given added urgency to the need to consider electricity market reform.

 

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NDP takes aim at approval of SaskPower 8 per cent rate hike

SaskPower Rate Hike 2022-2023 signals higher electricity rates in Saskatchewan as natural gas costs surge; the Rate Review Panel approved increases, affecting residential utility bills amid affordability concerns and government energy policy shifts.

 

Key Points

An 8% SaskPower electricity rate increase split 4% in Sept 2022 and 4% in Apr 2023, driven by natural gas costs.

✅ 4% increase Sept 1, 2022; +4% on Apr 1, 2023

✅ Panel-approved amid natural gas price surge and higher fuel costs

✅ Avg residential bill up about $5 per step; affordability concerns

 

The NDP Opposition is condemning the provincial government’s decision to approve the Saskatchewan Rate Review Panel’s recommendation to increase SaskPower’s rates for the first time since 2018, despite a recent 10% rebate pledge by the Sask. Party.

The Crown electrical utility’s rates will increase four per cent this fall, and another four per cent in 2023, a trajectory comparable to BC Hydro increases over two years. According to a government news release issued Thursday, the new rates will result in an average increase of approximately $5 on residential customers’ bills starting on Sept. 1, 2022, and an additional $5 on April 1, 2023.

“The decision to increase rates is not taken lightly and came after a thorough review by the independent Saskatchewan Rate Review Panel,” Minister Responsible for SaskPower Don Morgan said in a news release, amid Nova Scotia’s 14% hike this year. “World events have caused a significant rise in the price of natural gas, and with 42 per cent of Saskatchewan’s electricity coming from natural gas-fueled facilities, SaskPower requires additional revenue to maintain reliable operations.”

But NDP SaskPower critic Aleana Young says the rate hike is coming just as businesses and industries are struggling in an “affordability crisis,” even as Manitoba Hydro scales back a planned increase next year.

She called the announcement of an eight per cent increase in power bills on a summer day before the long weekend “a cowardly move” by the premier and his cabinet, amid comparable changes such as Manitoba’s 2.5% annual hikes now proposed.

“Not to mention the Sask. Party plans to hike natural gas rates by 17% just days from now,” said Young in a news release issued Friday, as Manitoba rate hearings get underway nearby. “If Scott Moe thinks his choices — to not provide Saskatchewan families any affordability relief, to hike taxes and fees, then compound those costs with utility rate hikes — are defensible, he should have the courage to get out of his closed-door meetings and explain himself to the people of this province.”

The province noted natural gas is the largest generation source in SaskPower’s fleet. As federal regulations require the elimination of conventional coal generation in Canada by 2030, SaskPower’s reliance on natural gas generation is expected to grow, with experts in Alberta warning of soaring gas and power prices in the region. Fuel and Purchased Power expense increases are largely driven by increased natural gas prices, and SaskPower’s fuel and purchased power expense is expected to increase from $715 million in 2020-21 to $1.069 billion in 2023-24. This represents a 50 per cent increase in fuel and purchased power expense over three years.

“In the four years since our last increase SaskPower has worked to find internal efficiencies, but at this time we require additional funding to continue to provide reliable and sustainable power,” SaskPower president & CEO Rupen Pandya said in the release “We will continue to be transparent about our rate strategy and the need for regular, moderate increases.”

 

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