Group Studying Electricity Competition Issues Interim Report

ENERGY--Group Studying Electricity Competition Issues Interim Report

Efforts to encourage competition in Nova Scotia's electricity market continue with the release of the first interim report by the Electricity Marketplace Governance Committee today, Jan. 10. The report provides a snapshot into the progress made by the committee in its first six months of deliberations on issues affecting Nova Scotia's electricity market.

"We've covered a number of very complex issues and wanted to release this document as we continue to work on our final recommendations," said Robert Fournier, chairperson of the committee. "While these recommendations are still open for discussion, they do provide a clear indication of our direction in encouraging competition and developing a more open electricity market here in Nova Scotia."

The report addresses three major topics discussed by the committee over the past few months including external influences on Nova Scotia's electricity market, market scope and transmission issues. The report makes 14 specific recommendations on transmission issues.

"Access to electricity transmission is fundamental to the entire issue of competition in the marketplace," said Mr. Fournier. "Before we can address any of the issues on the scope of the market, or exporting, we must develop a process that provides industry producers with a means of transmitting their product in a manner that is fair to both the producer and the owners of the transmission infrastructure, Nova Scotia Power Inc."

Energy Minister Ernest Fage thanked members of the committee for their ongoing efforts. "Nova Scotians expect that we will fulfil our commitment to encourage competition in our electricity market in a cautious, responsible manner, and that is what we're doing through the committee," said Mr. Fage. "I'm pleased that the committee is giving these complex issues the thoughtful attention they deserve and I look forward to receiving the final report at the end of March."

The committee was formed in May 2002 to provide a framework for a competitive energy market that allows economic benefits but also addresses the economic and environmental concerns of Nova Scotians. It is chaired by Mr. Fournier, a professor at Dalhousie University and includes a representative from each of the following organizations: Canadian Foundation of Independent Business; Canadian Manufacturers and Exporters; Consumers Association of Canada; Electricity Consumers Alliance of Nova Scotia; Municipal Electric Utilities of Nova Scotia Co-operative; Nova Scotia Power Inc., and Renewable Energy Industries of Nova Scotia.

The committee also includes observers from the Association of Chambers of Commerce, the Nova Scotia Department of Energy and the Nova Scotia Utility and Review Board.

A copy of the report can be obtained on the committee's Web site www.gov.ns.ca/petro/EnergyStrategy/emgc/ .

The committee is expected to release a second interim report in February and its final report is expected at the end of March.