Wednesday, February 23, 2011

TheStar Electricity prices to rise again as OPG seeks 6.2 per cent hike

TheStar Electricity prices to rise again as OPG seeks 6.2 per cent hike

OPG is getting a lot of resistance to this.
I've put together a graph to illustrate that they are the low cost producer - the blue bar is the average price in the wholesale market, and the maroon bar is OPG.
OPG is about 60% of market supply, and about another 20% is Bruce Power, a nuclear supplier that sells to the market at a little under the market rate.  The difference between the OPG rate and the Wholesale rate is therefore reflective of how much money is denied the public generation company to subsidize private wind/natural gas/ and solar suppliers.



In a functional market this discrepancy would not exist.

In this dysfunctional non-market, it makes no sense to strangle the low-cost producer while feeding the inefficient beasts.

No comments:

Post a Comment