The government of Alberta is making regulatory changes to improve the rules around economic withholding. These are based on recommendations from the Alberta Electric System Operator and the Alberta Market Surveillance Administrator.
These changes will encourage more competition, improve reliability and make utility bills more affordable for Albertans.
“Our government is committed to Alberta’s unique and investor-driven energy-only market. However, the market’s rules were designed 25 years ago, and some are no longer optimal for the system today. This will truly make a difference by helping lower Albertans’ utility bills.”
To protect consumers from prolonged spikes in electricity prices, the government has implemented two temporary measures that ensure Alberta has enough power generation available to meet Albertans’ needs, as well as limit the impacts of economic withholding on utility bills.
The two temporary policy changes are being implemented via new regulation and an amendment to the AESO’s rules.
The first addresses economic withholding by limiting the offer price of natural gas generating units owned by large generators, if net revenues cross a predefined threshold.
The second will address physical withholding, by requiring natural gas generating assets to be made available, as directed by the AESO, in certain circumstances such as extreme weather and other times of peak demand. These two changes still allow generators to earn revenue while ensuring Albertans have access to affordable and reliable power.
These temporary solutions are part of a larger, long-term effort to modernize Alberta’s electricity grid, ensuring it’s affordable, reliable and sustainable for generations to come, according to a government news release.
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