The Régie de l énergie

Transcription

1 The Régie de l énergie I N A N U T S H E L L F E B R U A R Y

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3 Mission T HE R ÉGIE DE L ÉNERGIE IS AN ECONOMIC REGULATION AGENCY.ITS MISSION IS TO FOSTER THE CONCILIATION OF THE PUBLIC INTEREST, CONSUMER PROTECTION AND THE FAIR TREATMENT OF THE ELECTRICITY CARRIER AND DISTRIBUTORS.THE R ÉGIE STRIVES TO ENSURE THAT ENERGY NEEDS ARE SATISFIED WHILE PROMOTING SUSTAINABLE DEVELOPMENT AS WELL AS INDIVIDUAL AND COLLECTIVE EQUITY. T O THIS END, THE R ÉGIE FIXES AND MODIFIES THE RATES AND CONDITIONS FOR THE TRANSMISSION OF ELECTRIC POWER BY THE ELECTRICITY CARRIER, THE DISTRIBUTION OF ELECTRIC POWER BY THE ELECTRICITY DISTRIBUTORS, AND THE SUPPLY, TRANSMISSION, DELIVERY AND STORAGE OF NATURAL GAS BY THE NATURAL GAS DISTRIBUTORS. IN FIXING AND MODIFYING RATES, THE R ÉGIE FAVOURS THE USE OF INCENTIVES TO IMPROVE THE PERFORMANCE OF THE ELECTRICITY CARRIER, THE ELECTRICITY DISTRIBUTOR AND THE NATURAL GAS DISTRIBUTORS, AND TO PROMOTE THE SATISFACTION OF CONSUMER NEEDS. T HE R ÉGIE EXAMINES CONSUMER COMPLAINTS ABOUT DECISIONS RENDERED BY THE ELECTRICITY CARRIER, THE ELECTRICITY DISTRIBUTOR OR A NATURAL GAS DISTRIBUTOR CONCERNING THE APPLICATION OF THE RATES OR CONDITIONS OF SERVICE. T HE R ÉGIE ALSO MONITORS THE PRICES OF PETROLEUM PRODUCTS AND STEAM. 1

4 Energy in the economy Comparison of energy consumption Québec and Canada, 1998 Energy investment as a percentage of total investment in Québec, 1990 to 2000 Consumption in Québec, 1998 (%) Coal 1 % Natural gas 16 % Petroleum 42 % 3.0 Electricity 41 % 0 Consumption in Canada, 1998 (excluding Québec) Coal 3 % Natural gas 35 % Petroleum 42 % Electricity 20 % (Number) 52,000 50,000 48,000 46,000 44,000 42,000 40, Total employment in the energy industry, 1990 to 2000 Source: Statistics Canada Sources: Economic Analysis Directorate, Ministère des Ressources naturelles du Québec, and L Énergie au Québec, 2000 edition. 2

5 Role and powers The Régie de l énergie is a multi-functional economic regulation agency with administrative and quasijudicial functions. Its role is to regulate monopolies in electricity transmission, electricity distribution and natural gas distribution. It also monitors non-monopoly markets to ensure that the free market system benefits the consumers, while permitting healthy competition between the market players. The Régie has authority to fix the rates and conditions for the transmission and distribution of electric power and the supply, transmission, delivery and storage of natural gas, after holding public hearings. It also monitors the operations of electricity and natural gas distributors to ascertain that consumers are adequately supplied, and monitors the operations of the electricity carrier, the electricity distributor and the natural gas distributors to ascertain that consumers are charged fair and reasonable rates. It approves the electricity and natural gas distributors supply plans and commercial programs. The Régie also approves investment projects, the construction of immovables or the acquisition of assets intended for the transmission or distribution of electric power or the distribution of natural gas. It approves the electricity carrier s operating and technical standards, including transmission network reliability standards. The Act respecting the Régie de l énergie gives Hydro-Québec the exclusive right to distribute electricity throughout the territory of Québec, excluding the territories served by a distributor operating a municipal, cooperative or private electric power system. Municipal systems also have exclusive distribution rights within the territories they serve. The Régie has sole authority to examine consumer complaints about a decision rendered by the electricity carrier, an electricity distributor or a natural gas distributor concerning the application of the rates or conditions of service. The latter carrier and distributors are required to apply an internal complaint examination procedure approved by the Régie. The Régie also has the power to monitor petroleum product prices and can provide the consumers with information on this regard. With respect to gasoline and diesel fuel, the Régie has the authority to determine, every three years, an amount per litre representing the operating costs borne by a gasoline or diesel fuel retailer, and to assess the expediency of excluding the amount from or including the amount in the operating costs borne by a retailer. 3

6 Electricity The Régie has the authority to fix the rates and conditions for the transmission of electric power by the carrier and the distribution of electric power by the distributor, after holding public hearings. It also monitors the operations of the electricity distributor to ascertain that consumers are adequately supplied, and it monitors the operations of the electricity carrier and distributor to ascertain that consumers are charged fair and reasonable rates. It approves the electricity distributors supply plans and commercial programs. The Régie also approves investment projects, the construction of immovables or the acquisition of assets intended for the transmission or distribution of electric power. The Act respecting the Régie de l énergie gives Hydro-Québec the exclusive right to distribute electricity throughout the territory of Québec, excluding the territories served by a distributor operating a municipal, cooperative or private electric power system. Municipal systems also have exclusive distribution rights within the territories they serve. The Régie has sole authority to examine consumer complaints about a decision rendered by the electricity carrier or the electricity distributor concerning the application of the rates or conditions of service. The carrier and distributor are required to apply an internal complaint examination procedure approved by the Régie. Sales revenue, 1999 Number of accounts, 1999 (000 $) Domestic et agricultural 3,034,000 General et institutional 1,963,000 Industrial 2,233,000 Other 215,000 Sales outside Québec 1,051,000 Total 8,496,000 Domestic and agricultural 3,206,211 General et institutional 280,383 Industrial 12,732 Other 5,986 Total 3,505,400 Source: Hydro-Québec, 1999 Annual Report 4

7 Natural gas Revenue, 1999 Customers, 1999 (000 $) Residential 217,553 Commercial 383,843 Interruptible and other 196,327 Industrial 382,414 Total 1,180,137 Residential 126,180 Commercial 42,065 Interruptible and other 143 Industrial 1,928 Total 170,316 The Régie has the authority to fix the rates and conditions for the supply, transmission, delivery and storage of natural gas by a distributor, after holding public hearings. It also monitors the operations of natural gas distributors to ascertain that consumers are adequately supplied and are charged fair and reasonable rates. It approves their supply plans and commercial programs.the Régie also approves investment projects, the construction of immovables or the acquisition of assets intended for the distribution of natural gas. The Régie has sole authority to examine consumer complaints about a decision rendered by a natural gas distributor concerning the application of the rates or conditions of service.the distributors are required to apply an internal complaint examination procedure approved by the Régie. Sources : Gaz Métropolitain and Company, Limited Partnership and Gazifère Inc. 5

8 Petroleum products The Régie monitors petroleum product prices and can provide the consumers with information on this regard. With respect to gasoline and diesel fuel, the Régie has the authority to determine,every three years, an amount per litre representing the operating costs borne by a gasoline or diesel fuel retailer, and to assess the expediency of excluding the amount from or including the amount in the operating costs borne by a retailer. Average price at the pump Regular gasoline, Québec ( /litre) Average posted price Minimum price (*) Wholesale price Mtl. Brent The Régie monitors and informs Every week, the Régie publishes the Bulletin d information sur le prix des produits pétroliers on its Website. The Bulletin provides comprehensive information on the average price at the pump, the minimum price estimated by the Régie and the fluctuations in the retail price of gasoline, diesel fuel and heating oil in all administrative regions of Québec (Week) Difference between average price at the pump and minimum price* Regular gasoline, Québec ( /litre) Difference Mean difference (Week) *Minimum price = Minimum price at the loading ramp + Minimum transportation cost + Federal and provincial taxes Sources: Régie de l énergie and Bloomberg 6

9 Consumer complaints The Régie has sole authority to examine consumer complaints about a decision rendered by the electricity carrier, the electricity distributor or a natural gas distributor concerning the application of the rates or conditions of service.the companies are required to apply an internal complaint examination procedure approved by the Régie. The Régie de l énergie has authority to examine and decide on all consumer complaints concerning: the application of a rate or condition of service for the transmission or distribution of electricity; the application of a rate or condition of service for the supply, transmission, delivery or storage of natural gas; and to ensure that the consumer is paying the applicable rate and is subject to the applicable conditions. Distributors consumer complaint examination procedure: The Régie has approved a specific consumer complaint examination procedure for each electricity or natural gas distributor or electricity carrier. It provides that: complaints about the application of the rates or conditions of service must first be filed with the company s customer service department, which can be contacted at the number or address that appears on the bill; if the consumer is dissatisfied with the response, he or she can file a written complaint with the company.the company then has 60 days to provide a written decision on the complaint; if the consumer is still dissatisfied with the company s decision, he or she can ask the Régie to review the complaint by filing a written complaint outlining the reasons for his or her dissatisfaction within 30 days of the company s decision. The complaint should be addressed to the Régie s Secretariat and accompanied by the company s decision and a cheque or money order for $30 made out to the Régie de l énergie; failing an agreement between the parties,the Régie examines the complaint on the basis of the evidence in the file. It may also decide to hold a hearing, either at its own initiative or at the request of one of the parties. 7

10 Highlights 600 decisions, including 400 rulings on complaints 200 days of hearings 4major opinions 1 investigation Methods for fixing and implementing electric power supply rates (August 1998) Role of wind power in Québec s energy portfolio (October 1998) Fluctuations in retail prices for gasoline and diesel fuel in the Abitibi-Témiscamingue, Saguenay-Lac-Saint-Jean and Haute-Mauricie regions (October 1998 to December 1999) Exclusive natural gas distribution rights in Bas Saint-Laurent, Gaspésie and Côte-Nord regions (July 1999) Conditions for the inclusion of production from small private hydroelectric plants in Hydro-Québec s resource plan (December 1999) Nearly consumer enquiries about the natural gas and electricity distributors complaint examination procedures and about petroleum product prices 8

11 2001 Calendar During the coming year, the Régie will deal with the following matters: Electricity Approval of transmission rates Review of Hydro-Québec s conditions of service Approval of technical standards Approval of distributors supply plans Approval of investments in transmission and distribution facilities Approval of a competitive bidding system and a code of ethics for new power generation Approval of distributors power supply contracts Approval of commercial programs Approval of a backup rate for independent producers Natural gas Gazifère and Gaz Métropolitain rate proceedings Unbundling of Gaz Métropolitain rates Approval of network extensions Approval of distributors supply plans Approval of investments in distribution facilities Approval of commercial programs Approval of a policy on the use of financial derivatives for the acquisition of natural gas Approval of energy efficiency programs Petroleum products (gasoline, diesel fuel and heating oil) Price monitoring Analysis of the expediency of including the operating costs borne by a gasoline or diesel fuel retailer in the Québec City region 9

12 @ For more information, visit our Website Consumers can obtain additional information on the complaints process available to consumers of electricity and natural gas by calling the Régie s consumer complaints information line: (514) (Montréal area) (418) (Québec City area) (outside Montréal and Québec City) Régie de l énergie Tour de la Bourse 800 Place Victoria Suite 255 Montréal, Québec H4Z 1A2 Telephone: (514) Fax: (514) Toll free: Régie de l énergie 1200 Route de l Église Suite 3.10 Sainte-Foy, Québec G1V 5A4 Telephone: (418) Fax: (418) Toll free: