Cried because I had no shoes : The impact of price caps on the Ontario electricity market

In late 2002, the Ontario Premier announced a Nine-Point response to the competitive electricity regime in the province, which was followed by the release of draft legislation. This draft legislation called for a government imposed retail price cap of 4.3 cent kilo watt hour for the cost of energy, effective December 1, 2002 to 2006. In addition, the Premier indicated a retroactive refund would be forwarded to customers from May 1, 2002, for charges above the price cap. In this document, the author argued for a lessening of the price cap proposals, and supporting a market allowed to hold its course toward competitive markets in the future. The arguments put forth by the author were: (1) the imposition of price caps will hinder long-term economic viability in Ontario, (2) the benefits of competition cannot be interrupted by politically-motivated responses, (3) if the current path is followed Ontario may be headed towards blackouts, (4) deregulation is essential if Ontario is to remain competitive in the electricity marketplace, and (5) upcoming downgrade in Ontario's red index score. 3 tabs