Electricity rates figure to be affordability and utilities minister Nathan Neudorf's 'toughest task'
CTV
Alberta’s affordability and utilities minister, Nathan Neudorf got his marching orders from premier Danielle Smith this week.
Alberta’s affordability and utilities minister, Nathan Neudorf, got his marching orders from Premier Danielle Smith this week.
And he’s got a lot on his plate. His mandate letter tasks Neudorf with "working with the relevant ministries to address cost-of-living concerns for Albertans, with a specific focus on housing, utilities, food costs, and insurance.”
All are large files, but most experts agree revamping Alberta’s 20-year-old deregulated electricity market will be his biggest task
"We've had a deregulated market for over 20 years now. And people have made investments in our market, especially (energy) generation companies under a certain framework, right? So to make any changes to that has to be taken deliberately and cautiously and needs to protect investors as well," said Colette Chekada, president of Carmal Energy Advisors.
"When you think about our electricity policy, it has largely remained unchanged since 2005. And we do live in a different world now than we did then when thermal assets were ... the expected source of generation for ... the future.
"That's not the case anymore," he added. "And our policy needs to evolve to reflect the fact that we need to get to a net-zero grid.”
Speaking to reporters in Edmonton on Thursday, Smith identified two specific parts of the electricity market she thinks need immediate attention: the regulated rate option (RRO) and transmission and distribution costs.
