McGill School of Environment - Regulation Reform in the Electricity Industry
Recommendations
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I)We recommend that governments use extreme caution when contemplating regulation reform in the electricity industry. Endemic strategies should be developed that account for local geography, demography, economy and culture, while allowing a margin of error for unpredictable occurrences. The consumer should be wary of any government so brash as to promise certainty in outcome. We further recommend that, where possible, consumers take it upon themselves to explore all options for improving energy efficiency within their own homes.
II)We recommend that our client advocate for more stringent reporting mechanisms on the part of the utilities and the agencies that monitor their activities.
III)We recommend that all comparisons of the electricity industry to other network utilities such as airlines and telecommunications be avoided or at the very least be guarded with a hint of skepticism.
IV)
We recommend that when considering regulation reform
in the electricity industry, full deregulation is optimal. Prices should be
allowed to reach a natural equilibrium.
To government:
-Use caution when considering regulation reform
-Develop endemic strategy
-Full
deregulation optimal
-Allow price to reach natural equilibrium
-Public benefit requires explicit attention
To client:
-Advocate strong public policy regardless of regulatory structure
-Push for more practical energy efficiency programs
-Advocate provisions for low income households
-Advocate for more stringent reporting mechanisms
To consumers:
-Be wary of government promises
-Explore options for improving home efficiency
© 2002 McGill School
of Environment McGill University 3534 University, Montreal, Quebec, Canada H3A 2A7 |