Retailers test Ontario market

In anticipation of the full opening of the Ontario electricity market in November 2000, some of the newly-licensed electricity retailers are reported to be ready to begin testing the market early, hoping that all the uncertainties that still exist about pricing will be worked out in time. Among those jumping in now is Direct Energy Marketing, a retailer which claims 800,000 households in Ontario as electricity supply customers, as well as a wholesale gas marketing business. Direct Energy began retail electrical marketing on April 3, 2000, starting cautiously with small commercial operations as the initial target. Greengrid Electric, another of the new marketers, planned to begin marketing in mid-April, offering 100 per cent renewable-sourced electricity. Provident Energy Management, one of the new marketers whose licence is still pending, hopes to begin direct marketing as soon as its licence is confirmed. Another marketer ready to go as soon its license is issued is the former Sault Ste. Marie Hydro, now reorganized as PUC Energies Inc. PUC has the advantage of having a firm contract with a NUG (non-utility generator), Great Lakes Power, signed while PUC was still a municipal electric utility. As far as the other potential marketers are concerned, caution overrides opportunity for the present. Principal concerns are uncertainty over the retail settlement code, the electronic business data transfer system, transmission and distribution tariffs, whether existing non-utility generator contracts will allow for supply to another party, and over how quickly Ontario Power Generation Inc's (successor to Ontario Hydro) market power will be ratcheted down. Many of the potential marketers feel that despite the Ontario government's desire to see more competition, the power mitigation agreement, as it now reads, leaves little room for the small retailer to compete