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The Price Isn't Right: The Need for Reform in Consumer Electricity Pricing

Author

Listed:
  • Donald N. Dewees

    (University of Toronto)

Abstract

Electricity prices should fully link the consumer price to peak-period generation costs, environmental costs and the high cost of new generation, according to an expert analysis released today by the C.D. Howe Institute. The author says such pricing reform is required to reduce both financial and electrical stress on the system and help prepare Ontario – and other provinces – for the rising costs of new generation.

Suggested Citation

  • Donald N. Dewees, 2010. "The Price Isn't Right: The Need for Reform in Consumer Electricity Pricing," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 124, January.
    • Handle: RePEc:cdh:backgr:124
    as

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    File URL: https://www.cdhowe.org/public-policy-research/price-isnt-right-need-reform-consumer-electricity-pricing
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    References listed on IDEAS

    as
    1. David Laidler, 2009. "Getting Talk Back on Target: The Exchange Rate and the Inflation Rate," e-briefs 89, C.D. Howe Institute.
    2. Kathleen Spees & Lester Lave, 2008. "Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 101-122.
    3. Jean-Thomas Bernard & Jean-Yves Duclos, 2009. "Quebec's Green Future: The Lowest-Cost Route to Green Gas Reductions," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 118, October.
    4. Adam Aptowitzer, 2009. "Bringing the Provinces Back In: Creating a Federated Canadian Charities Council," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 300, November.
    5. Keith Ambachtsheer, 2009. "Pension Reform: How Canada can Lead the World," Benefactors Lecture 2009, C.D. Howe Institute.
    6. Jean Boivin, 2009. "Getting it Right When You Might Be Wrong: The Choice Between Price-Level and Inflation Targeting," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 297, September.
    7. Colin Busby & William B.P. Robson & Pierre-Marcel Desjardins, 2009. "Stress Test: Demographic Pressures and Policy Options in Atlantic Canada," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 120, November.
    8. Bev Dahlby & Michael Smart & Benjamin Dachis, 2009. "New Housing and the Harmonized Sales Tax: Lessons from Ontario," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 119, October.
    9. Benjamin Dachis, 2009. "A Clean Canada in a Dirty World: The Cost of Climate-Related Border Measures," e-briefs 90, C.D. Howe Institute.
    10. Alexandre Laurin & William B.P. Robson, 2009. "Supersized Superannuation: The Startling Fair-Value Cost of Federal Government Pensions," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 122, December.
    11. Nick Le Pan, 2009. "Look Before You Leap: A Skeptical View of Proposals to Meld Macro- and Microprudential Regulation," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 296, September.
    12. Bev Dahlby, 2009. "Once on the Lips, Forever on the Hips: A Benefit-Cost Analysis of Fiscal Stimulus in OECD Countries," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 121, December.
    13. Malcolm Burrows, 2009. "Unlocking More Wealth: How to Improve Federal Tax Policy for Canadian Charities," e-briefs 86, C.D. Howe Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Philippe Bergevin, 2010. "Addicted to Ratings: The Case for Reducing Governments’ Reliance on Credit Ratings," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 130, May.
    2. William B.P. Robson & Colin Busby, 2010. "Freeing up Food: The Ongoing Cost, and Potential Reform, of Supply Management," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 128, April.
    3. Donald Dewees & Trevor Tombe, 2011. "The Impact of Sub-Metering on Condominium Electricity Demand," Canadian Public Policy, University of Toronto Press, vol. 37(4), pages 435-457, December.
    4. William B.P. Robson, 2010. "Cutting Through Pension Complexity: Easy Steps Forward for the 2010 Federal Budget," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 126, February.
    5. Henning Bjornlund, 2010. "The Competition for Water: Striking a Balance among Social, Environmental, and Economic Needs," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 302, April.
    6. Colin Busby & William B.P. Robson, 2010. "Target Practice Needed: Canada’s 2010 Fiscal Accountability Rankings," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 129, May.

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    More about this item

    Keywords

    Economic Growth and Innovation; electricity pricing; Province of Ontario; conservation; environmental cost; real-time pricing;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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