Deregulation is why we are paying more for utilities

By Lethbridge Herald on April 29, 2022.

Editor:

Provincial and federal elected representatives are fielding complaints of high utility bills while chanting the “Less government, more Canada” slogan. “Less government” is why we pay high vehicle registration and licensing fees. “Less government” or privatization of utilities is exactly the reason why we have such high utility bills. Alta-link – purchased by U.S. and UK-owned Berkshire Hathaway in 2014, charged all Albertans for significant electrical infrastructure over the past few years but neither we nor the government own transmission lines. 

Given time since deregulation, many customers do not understand their choice between regulated and de-regulated utilities. I abandoned an unpleasant experience with a deregulated company a decade ago and it appears I may pay less. 

After all, if you insert a utility re-seller between the wholesaler(s) and the consumer, there must be a significant profit margin. I suggest consumers protest by signing with a regulated provider.

Between distributors (Fortis Alberta, Atco Gas) and consumers are many companies such as Alta-Link, Direct Energy, Enmax and Epcor who are “regulated” or default suppliers. Companies such as Enmax and Epcor have both regulated and deregulated subsidiaries. Additionally, a myriad of deregulated companies and provincial oversight support the deregulated sector.

 All these large organizations have high-paid management and boards.. How many layers of admin costs are being paid? Shortening the supply line may put an untold amount of money back into the hands of the consumer. 

I can’t pretend to completely describe Alberta’s complicated utility system but it is easy to see how high utility charges are needed to accommodate profit margins for all the utility company levels and stockholders. 

Blaming high utility fees on high oil prices (silly consumers who can’t read administration charges!) and carbon tax, the provincial government is laughing and celebrating their royalty fees. Those who shout “Less government” can look forward to being rewarded with future prospects with these private companies.

Barb Goertzen

Coaldale