FOR IMMEDIATE RELEASE: June 23, 2000
IPPSO View on Market Delay
"It has become more important than ever to maintain the momentum towards competition that has been established in Ontario," said IPPSO Executive Director Jake Brooks, in response to the recent revelation that electricity competition will be delayed in Ontario. IPPSO understands the necessity for some sort of delay, but believes that "Any delay in market opening should be as short as reasonably possible." He also stressed that "It is very important, for the players in this market, that the government and IMO move quickly to set and publish a revised date certain for market opening."
In IPPSO's view, the purpose of any delay in market opening should be focused: to ensure that crucial systems operate reliably. Brooks says that the province may have to take pains to ensure "no unnecessary factors" are allowed to add to the delay. "Delay is costly for most participants. Our members are spending money every day on preparing for competition. The costs of further delay fall hardest on the new entrants, the very people who are most needed to make a competitive market work well."
IPPSO is also suggesting that delay in market opening need not push back the timeline for decontrol of the assets of the former Ontario Hydro. They should still be required to decontrol to 35% of the price-setting market by November 2004, or sooner, Brooks said. This is in line with IPPSO's previous recommendation that the time-frame for decontrol be shortened, and a plan for decontrol be made available for review in a public hearing process.
The views expressed recently by the members of the Stakeholders' Alliance for Competition
and Customer Choice are broadly reflective of IPPSO's feelings on the subject:
- The Government needs to adopt an even stronger role of leadership in continuing to push the
competition agenda
- The Province should move as quickly as possible to sell electricity assets in an open process
that puts competition, early debt-reduction and price-reduction as high priorities.
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For further information, please contact:
Jake Brooks, Executive Director 416-322-6549
Independent Power Producers' Society of Ontario (IPPSO)
PO Box 1084, Stn. F, Toronto, Ont. M4Y 2T7
tel.: 416-322-6549 fax 416-481-5785
e-mail: ippso@ippso.org website: http://www.newenergy.org