Alberta’s government is changing the rules for electricity producers in an attempt to bring down consumer bills. The new rules target a practice called “economic withholding,” where generators hold back some electricity to sell it for a higher price later.
This tactic has been blamed for recent spikes in electricity costs. Under the current system, generators only get paid for the power they produce, not for having backup capacity available.
The new rules will:
- Limit the price big natural gas generators can charge if their profits are already high.
- Force generators to make their power available during emergencies or peak demand periods.
The government says these changes will still allow generators to make money while keeping electricity affordable and reliable.
However, some critics worry that the new rules might discourage investment in new power plants. They argue that if generators can’t charge high prices during peak times, they’ll be less likely to build new capacity, potentially leading to power shortages in the future.
These changes are the first step in a potential overhaul of Alberta’s electricity market. The current system was designed for a coal-powered grid and may not be suitable for the province’s growing reliance on natural gas and renewables.
