Consumers Council of Canada News

August 2012


Distribution sector review must put consumer rights first

Aug 24, 2012 3:15 PM
CCC Admin

The Consumers Council of Canada has released its written submission to the Ontario Distribution Sector Panel, in which it set out some high level principles for the Panel to consider in its deliberations about the local electricity distribution sector.

Of note among the points made:

  • Any restructuring initiatives should be focused on what is best for Ontario electricity ratepayers and should create efficiencies and cost reductions in the sector without compromising the safety and reliability of electricity supply. Efficiencies and cost reductions should ultimately be reflected in the costs to consumers.
  • How the rights of consumers can be sufficiently protected should be considered in the context of any restructuring.
  • Regulatory oversight of the Ontario LDCs should not be compromised in any way during and after any restructuring initiatives. The LDCs are regulated monopolies that require oversight to ensure that the interests of consumers are sufficiently protected. Any major changes to the sector must be coordinated with the OEB to ensure effective regulatory oversight.

The Ontario government appointed Murray Elston to lead the three-member Panel, which will conduct a comprehensive analysis of Ontario's current electricity distribution sector, and will report back to the Minister of Energy before March 2013.

The Council made oral representations on behalf of Ontario consumers to the Panel on July 17, 2012, and prior to that made written submission to the panel. Read the written submission. [PDF]

The Council stressed the following Consumer Rights for Residential Energy Consumers:

Basic Needs: The right to access reliable sources of energy at affordable prices to meet household needs (e.g. heat, light, cooking, etc.). Affordable prices are prices that reflect the true cost of production and delivery, are borne equitably by all segments of society and do not require consumers to neglect other basic needs such as shelter and food.

Safety: The right to a safe supply of electricity, and other sources of fuel (gas, propane, oil etc). Information: The right to timely, accurate and complete information about sources of energy, pricing and wise use of energy so residential consumers can make informed choices about their energy use.

Choice: The right to choose energy products and services at competitive prices, and, when this is not possible because of a monopoly situation, the right to have independent and effective regulatory oversight ensure that pricing of energy is fair and reasonable.

Representation: The right to have the residential consumer interest effectively represented in the regulatory and government processes.

Redress: The right to be compensated for and protected from unsatisfactory service or undue pressure to purchase energy services.

Consumer Education: The right to acquire knowledge and skills about energy products and services their wise use.

Healthy Environment: The right to energy at a reasonable cost from sources that minimize damage to the environment.

Privacy: The right to privacy of personal information that is collected from energy providers to provide energy services.

  

July 2011


Council contributes to precedent-setting OEB ruling

Jul 14, 2011 5:26 PM
CCC Admin

The Ontario Energy Board (OEB) this week issued a precedent-setting ruling against an application by Toronto Hydro to charge electricity ratepayers $45 million to pay for conservation and demand management programs many of which it found duplicated those of the Ontario Power Authority (OPA).

The Consumers Council of Canada had argued before the OEB that Toronto Hydro’s request was contrary to Ontario government requirements that local electricity distribution companies and the OPA avoid duplicating their programs.

“The OEB ruling is a positive step to ensure money spent on conservation is used efficiently and effectively,” said Consumers Council of Canada President Don Mercer. "The ruling sets an important precedent, as other local electricity distribution companies move ahead with their demand management and conservation plans."

The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest. OPA has operating responsibility for ensuring Ontario has a reliable, cost-effective and sustainable electricity system.

Robert Warren, the Council’s lawyer, said the decision shows the value of the OEB.

"The board has found that Toronto Hydro was proposing to waste $45 million of its ratepayers' money on unnecessary conservation programs," he said. "The board has found that Toronto Hydro and the OPA are not doing their jobs in ensuring that ratepayers' money is being prudently spent."

Among other programs, Toronto Hydro sought money to incent homeowners who now pay a flat rate for their water heaters to give up the privilege. The OEB disallowed this, saying Toronto Hydro can terminate the flat rate program on its own, without offering incentives paid for by other customers.

The OEB also disallowed a $20-million program to curb power use in apartment and condo buildings, saying it was untested and not fully justified.

And it sharply scaled back an $11.5 million program to reward small- and medium-sized businesses who install a device that allows Toronto Hydro to power down air conditioning systems for brief periods when demand strains the system.

  

February 2011


Council will represent consumers concerning "Renewed Regulatory Framework for Electricity"

Feb 1, 2011 4:57 PM
CCC Admin

The Consumers Council of Canada has been determined by the Ontario Energy Board to be eligible under section 30 of the Ontario Energy Board Act, 1998 to participate in a coordinated consultation to develop three related elements of a Renewed Regulatory Framework for Electricity. The objectives of the three consultations are:

  • Distribution network investment planning: To ensure that distributor investment plans are demonstrably economically efficient and cost-effective, and paced so as to match required expenditures with fair and reasonable rate adjustments and predictable changes to the elements of customer bills affected by the plans;
  • Rate mitigation: To provide utilities and the Board with a set of tools, approaches or options to help mitigate the effects of unavoidable and significant rate/bill impacts; and
  • Defining and measuring electricity utility performance: To create conditions which will foster the cost-effective and efficient implementation of Board- approved network investment plans by transmitters and distributors through the establishment of appropriate standards for performance and efficiency, the provision of appropriate incentives, and the review of utility performance.
Julie Girvan will act as consultant for the Council.

  
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