Saturday 9 December 2000
Consumers face jolt from energy fallout
Energy crisis threatens Alberta Advantage
Geoffrey Scotton, Calgary Herald
Consumers should brace for higher prices as businesses get set to pass on a double whammy of skyrocketing electricity prices and mushrooming natural gas costs, business leaders warn.
"There's no question that ultimately consumers are going to take it on the chin," said Dan Kelly, Alberta director of the Canadian Federation of Independent Business, which represents more than 900 small- and medium-sized firms in Alberta.
"We've certainly been hearing an awful lot about it," Kelly said of increases that have seen the price of gas in Calgary double to $6.496 per gigajoule from $3.262 per gigajoule a year ago according to the Alberta Energy and Utilities Board.
At the same time, Power Pool of Alberta prices per megawatt hour have more than tripled to an average $130 so far this year from about $40 a year ago.
The exploding price of electricity in the weeks leading up to deregulation New Year's Day led the Alberta government of Premier Ralph Klein to step into the marketplace last week and cap residential prices, calming the situation for now but creating industry and consumer uncertainty about the future.
"I think the prices will be reviewed and are going to increase next year," said an official at a major Calgary greenhouse operation.
"It hasn't affected our prices yet, and we've got everything going, lights on and greenhouse at 82 degrees (Fahrenheit)," added the official, who asked not to be identified for competitive reasons.
Landlords at some Calgary rental properties have already warned tenants to conserve energy or face potential rent increases.