Alberta Chamber Blames Deregulation For High Costs

EDMONTON -- (UPI) -- Most of the businesses responding to an Alberta Chamber of Commerce survey blame electricity deregulation for rising power costs.

The survey found that 117 out of 153 members thought high prices were linked to deregulation more than other market factors.

Only 31 said they agreed that "current high electricity costs are more a function of high energy costs in the marketplace than deregulation itself," as the provincial government has argued.

Five members said they thought high prices were the result of a combination of factors or they weren't sure.

Chamber president Al Petersen said he was surprised at the results, and disappointed at how few responses came in.

The Alberta chamber comprises 150 locals which represent more than 20,000 businesses across the provinces.

Twenty-six of the 153 responses were from local chambers of commerce and the rest were from individual businesses. The survey was mailed out in January and responses were collected until Feb. 7.

Petersen suggested the survey shows that many business people blame deregulation for the tripling of power rates over the past year, but the key factor is economic growth in the province, which has boosted demand and lowered supply.

"With or without deregulation, costs would have gone up," Petersen said. "It tells us there's a lot of confusion out there."

Asked to check off one of three options for action the Alberta government should take, 61 called for electricity to be re-regulated. Forty-four said the province should provide incentives to accelerate the development of new generating plants, while 11 said the government should continue to use budget surplus dollars to subsidize power costs. The remainder favoured a combination of the options.

Ninety-two respondents said high power costs will cause them to divert money budgeted for expansions or research and development.

Petersen said the Alberta chamber continues to favour deregulation.

But the results of the survey may stir debate on a policy change at the spring annual meeting, he said.

New Democrat MLA Brian Mason said the survey results are the first hard evidence that the business community opposes the Conservative government's deregulation policy more than some may think.

"It shows that businesses tend to be very practical and not nearly as ideological as (Treasurer) Steve West and the government," said Mason, whose party favours re-regulation.