Let consumers pay going rate for energy
COALITION OF PRODUCERS Resist urge to shield public from ‘ the real price’
CALGARY • Governments must resist implementing measures to protect consumers from high energy prices, a group representing some of Canada’s top energy producers said yesterday.
“Energy consumers need to see the real price,” said Michael Cleland, chairman of the Energy Dialogue Group, a broad coalition of producers of oil and gas, power, nuclear, wind and coal, as well as pipeline companies, service providers and proponents of energy efficiency.
Pressures from consumers to provide breaks will increase because of high energy prices, but “the idea of direct rebates that have the effect of masking the price signals is not a particularly helpful sort of energy policy” because it keeps consumers from changing their behaviour and becoming more efficient, he said.
The recommendation is part of a series of initiatives the coalition would like to see in a Canadian energy strategy. It renewed its call for such a strategy at a meeting yesterday of provincial energy ministers in St. Andrews, N. B.
Governments can use other measures to provide relief to lowincome earners, such as programs to improve home insulation, Mr. Cleland said.
Already, several provinces offer rebates and subsidies to temper energy costs: British Columbia, Manitoba, Quebec and Ontario keep electricity costs artificially low; Alberta offers rebates on natural-gas heating bills; and Newfoundland and Prince Edward Island regulates gasoline prices.
Most Canadian homes are heated with natural gas. Higher natural gas prices are expected to boost heating bills by 10% to 30% this winter. Heating bills will rise less than spot natural gas prices because many utilities will be able to pass on the benefit of hedging programs.
The group says Canada — the top producer and consumer of energy per capita in the industrialized world — badly needs a framework developed jointly by industry and the federal and provincial governments that makes energy development a political priority, promotes energy efficiency, streamlines regulation, encourages technology, and helps industry deal with labour shortages in areas of high activity, such as Canada’s booming oilsands.
The federal government has until recently resisted the idea because of worries it might result in a political backlash similar to that triggered in 1980 by the National Energy Program, but Mr. Cleland said it is now doing more thinking about energy and holding discussions with provinces.
Financial Post
ccattaneo@ nationalpost. com