What Electricity Restructuring Means for Your Business

In the ‘90s, people moved to Alberta by the tens of thousands, and economic growth was proceeding at an unprecedented pace. The use of electricity skyrocketed. Prices skyrocketed, too, as demand began to outstrip supply.

A competitive environment had to be created to attract private sector investment in this new generation, to meet our growing needs.

The restructuring initiative in Alberta began with the passing of the Electric Utilities Act (EUA) in 1995. Its purpose was to create competition in the generation and retail side of Alberta’s electricity industry with a view to providing greater choice and price competition for customers, as well as removing the economic burden on consumers for the construction of new generation facilities.

The restructuring initiative replaced Alberta’s traditional electricity industry structure of vertically integrated utilities with a market-driven competitive supply and retail structure. The transmission and distribution wires remain a monopoly and are now regulated by the Alberta Utilities Commission (AUC), previously known as the Alberta Energy and Utilities Board (EUB).

As a result of the restructuring initiative, since January 1, 2001 Alberta customers may elect to take electricity service from their choice of suppliers in the marketplace. Retail affiliates of distribution wire owners as well as independent retailers may offer competitive electricity service to customers in the province.