Alberta Government Introduces Updated Regulations for Electricity Generators
Alberta’s government is updating its electricity market rules with new temporary measures aimed at lowering consumers’ utility bills.
The new measures target the practice of “economic withholding,” commonly used by power generators in Alberta’s unique free-market electricity system.
Under Alberta’s competitive market design, electricity suppliers submit offers into the power pool every hour. The Alberta Electric System Operator dispatches the suppliers’ electricity based on prices and power needs for that hour.
Economic withholding occurs when power producers hold back some supply to offer at a higher price, risking profit if not needed. This practice has led to high consumer power bills and price inconsistencies in Alberta.
“Our government is committed to Alberta’s energy-only market, but rules designed 25 years ago need updating for today’s system,” said Utilities Minister Nathan Neudorf.
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The government will limit offer prices from large providers’ natural gas units and require assets to be available in certain circumstances.
These changes aim to lower costs for consumers while ensuring reliable power supply.
However, critics warn that setting limits too low could discourage investment in new generating capacity.
Joel MacDonald noted that these changes may impact long-term power generation in Alberta.
Neudorf unveiled these updates at a conference, with industry feedback pending.
More changes may follow as Alberta’s power market adapts to modern demands.
In a recent emergency, the province struggled to meet power needs due to outages and shifting energy sources.
