The Electricity Distributors Association, together with the Ontario Distribution Sector Review Panel, published a six-point plan September 8 that they say will realize the full potential of Ontario’s electricity distribution system, achieve efficiencies and save Ontario electricity consumers more than $540-million each year.
“Our submission details how, with the right changes, the government could reduce customer bills by close to five per cent and improve the distribution system in Ontario at the same time,” says Max Cananzi, Chair of the EDA. “LDCs can deliver more than just electricity – by growing and delivering more services to their communities, they can be even more efficient which will lead to savings for customers.”
The EDA’s six point plan examines all aspects of the distribution sector including operations, ownership, regulation and new and emerging technologies to find ways to make the sector more efficient.
“There are definitely savings to be had through mergers and amalgamations if done correctly – we estimate about $50-million worth – but it doesn’t end there,” says Charlie Macaluso, President and Chief Executive Officer of the EDA. “We dug deeper and identified greater and more significant savings of nearly a half a billion dollars that could come from improved regulation, a keener focus on the customer and encouraging distributors to grow.”
The EDA says capturing the $540-million per year in savings will depend on whether the government will make the following changes in the electricity distribution industry:
1. Allow LDCs to manage water and waste-water services ($180-million)
2. Permit LDCs to carry out street light maintenance work in their communities ($15-million)
3. Let LDCs take the lead in designing and developing conservation and demand management programs that make sense for their customers and communities instead of today’s centrally planned, one-size-fits-all programs ($20-million)
4. Improve industry regulations ($15-million)
5. Curtail energy retailers in the residential sector ($260-million)
6. Promote the voluntary mergers of LDCs ($50-million).
The full EDA submission, “Power to Deliver: Recommendations for the Future of Electricity Distribution in Ontario,” is available on the Association’s website at www.eda-on.ca.