
Is the OEB regulating electricity
pricing or selling gas furnaces?
That might not be a fair question, but
they sure aren't doing much on the electricity regulation front.
TOU rates were first introduced for the
summer (May thru October) of 2006. I've run the data to compare the
RPP rates against the average Hourly Ontario Energy Price (HOEP) of the TOU periods (using today's TOU hours). Up
until 2008, the off-peak rates were set, essentially, at the expected
market rate, and excess costs due to contracts, or party hats for the
Ontario Power Authority (OPA), were recovered through higher mid, and
on-peak, rates. But since the acceleration in the smart meter program, and the lure of 'savings' through shifting usage patterns, the price
has been disproportionately raised in the off-peak periods. There
are twin reasons for this, both of which a strong and effective regulator would oppose. The one reason was feigning a break for customers by extending off-peak hours (to a rather silly 7 pm start),
and the other is getting money where it is easiest to get – which
is from residential consumers during the hours they are most likely
at home.
The rates, HOEP and RPP TOU, diverge in
2008 as enormous exports appear due to a supply glut coinciding with
a demand downturn. That's notable today, because the OEB's
release on their latest price hike states that the, “...main
factors are increased nuclear and renewable generation coming online
during the forecast period.”
No kiddin' ... the nuclear is at half
the price of the wind, but forgetting that ...
All new supply is contracted, so the regulator would be a good place to shut down further procurement of further oversupply.
The last time the OEB announced a rate
hike, I
wrote on the supply glut and noted the Ontario Clean Energy
Benefit (OCEB) is not a break for families, but an additional tax
burden that can only serve to break families.
Today the OEB said the rate hikes weren't rate hikes at all, because the OCEB was lowering your
electricity bill (the release didn't note the OCEB portion goes on
the tax bill instead).
The OEB release includes:
The Ontario Energy Board regulates the province’s electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers served by responsive regulatory processes that are effective, fair and transparent.
Efficient energy sector?
Informed Consumers?
Responsive Regulatory Processes?
Effective, Fair ....?
Acquiescent
Docile
Unimpressive