McGill School of Environment - Regulation Reform in the Electricity Industry






Executive Summary

Research Question

Case Sudies





The Group


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Final report
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Final Report

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
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