Power Bills A Shock To Small Alberta Firms

EDMONTON -- - Just over half of the Alberta independent businesses that responded to a survey on electricity deregulation say they don't have enough information to manage their electricity costs.

The Canadian Federation of Independent Business, which represents 100,000 small- and medium-sized businesses in Canada, wants the government to do more to provide price comparisons and clear policies on future rebates.

"We see this as a real role for government, to be able to provide that information to small firms," said Corinne Pohlmann, senior policy analyst in Alberta for the federation.

"Let's arm them with the ability to manage these costs so they can then go to the companies that provide electricity and be able to do so with some confidence."

Two-thirds of the 951 businesses that responded to the survey were "somewhat" or "very dissatisfied" with the government's handling of the process of electricity deregulation over the past six months.

Almost two-thirds of respondents who provided an estimate of their electricity costs experienced at least a 50-per-cent increase in their power rates this year. The average rate increase was 78 per cent.

It affected the way some of them did business. "About one in four of the firms did make significant changes to their operations or to lay people off or even think about perhaps moving," said Pohlmann.

The survey showed medium-sized firms with more than 50 employees were particularly hard hit because many were too big too qualify for the regulated-rate option, yet too small to negotiate favourable deals with electricity suppliers.

The federation met with Alberta Energy Minister Murray Smith Wednesday to discuss the survey.

"It was a good meeting and we listened to their survey results and we certainly are reacting on the communications side," said Smith.

"We're continuing to bring forth new communication initiatives on explaining the market. We expect the marketplace competitors to communicate with their customers as well."

He said electricity retailers have improved the information available on their Web sites and the government is upgrading its site.

"We know that we have just as much responsibility here to make sure our members understand what's going on and (we need to) be able to provide ideas of where they can get more information," said Pohlmann.

With the recent entry of international power giant Enron Corp. into the commercial market and lower rates from Epcor, Smith suggested the survey, which was conducted in May and June, came a bit late in the deregulation process.

"We're seeing the competitive market move and respond appropriately."