Another electricity deregulation delay

The target date is now July 1, 2006, six months later than the original schedule, Energy Minister Murray Smith said recently. Last week, an official in Smith's office confirmed plans to push back power deregulation for small and medium sized businesses by 30 months.

Smith said Albertans need more time to adjust to deregulation. He's also hoping for more competition in the electricity market.

In August, EPCOR Utilities Inc., one of Alberta's largest power providers, announced it would no longer sell retail natural gas and electricity contracts to homeowners and small commercial customers.

EPCOR president Don Lowry said his company made the decision because most consumers don't want to sign contracts for essential commodities such as electricity, a key prerequisite if deregulation is to work.

Lowry cited a report on deregulation from a U.S. non-profit energy think tank that suggested deregulation has virtually ground to a halt across North America.

Opposition politicians say it's now clear Premier Ralph Klein's Tory government wants to postpone deregulation until after the next election because it fears further increases in power rates could turn off voters.

``This extension of the regulated rate option is to prevent Alberta voters from seeing first hand the expensive consequences of electricity deregulation before they go to the polls,'' said Liberal energy critic Hugh MacDonald.

``It's a decision clearly designed to get them past the next election, which will come in the spring of 2005 at the latest,'' added New Democrat Leader Raj Pannu.

``What this government needs to do is clearly state that it made a terrible mistake by going the deregulation route.''

MacDonald has in the past called on the province to re-regulate a market that has brought consumers nothing but higher prices and confusion.