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Summary of Stakeholder Views: Montreal, Halifax and Calgary Workshops - Consultation

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Electricity Trade Sector Review Round 2 of Stakeholder Consultations May 2001 DRAFT 2001-06-15

Workshops held

Purpose, obtain stakeholder views on:

Extent of Measurement Canada involvement needed to ensure accurate and fair electricity metering in future at reasonable cost

•  Degree of continued marketplace protection needed for vulnerable parties (the party not in control of the billing meter)
•  Appropriate indicators and reporting methods for monitoring metering system accuracy and equity performance
• Improving the openness, transparency, inclusiveness and accountability of the rulemaking process

MC mission and accountabilities

Our mission: To ensure that accurate and equitable measurement of goods and services is achieved in order to contribute to a fair and competitive marketplace for Canadians

• We administer and enforce the Electricity and Gas Inspection Act and the Weights and Measures Act
• Electricity is 1 of 39 different business sectors where trade measurement is significant (examples of others are natural gas, retail food, water )
• We periodically review the need for our intervention in each sector beyond active monitoring and solicit stakeholders' views as a key element in these decisions, particularly those of vulnerable parties

The stage: recent electricity meter system performance

In 1999 MC found 269 meters out of dispute tolerance generating
$6.9 million of inequities (vs. 1997 estimated electricity sales $30
billion)

• 98% of meters in meter shops were found to be within legal reverification tolerance in 1999
• 3% of sub metering accounts sampled in 2000 had measurement error infractions (100% had administrative non-conformances)
• There is insufficient reporting of complex metering installation inspection results to enable assessment of performance accurately at present
• An unknown and potentially large number of electricity sellers/resellers (contractors) may not be aware of their accuracy rights and responsibilities
• Consumer confidence is high but marketplace restructuring and technological change are creating a need for increased education

Views: Extent of Measurement Canada involvement needed into the future

Role of an independent 3rd party like Measurement Canada is essential to maintain integrity, confidence and trust in the system

• Measurement Canada should continue to establish and enforce minimum meter accuracy performance requirements for vulnerable consumers
• There is too much prescriptive regulation at present, it is not always understandable and it is not being enforced in consistent manner: national enforcement of performance based regulation is needed
• MC accreditation of meter service providers has worked well but a new model may be needed to maintain performance at reasonable cost

Views: Degree of marketplace  protection needed for vulnerable parties

Vulnerable parties want continued access to Measurement
Canada's meter dispute resolution process

• Measurement Canada provides the necessary impartial service but does not have to perform all the meter testing itself
• Business consumers may have access to alternate dispute resolution processes, hire their own meter testers or install a check meter
• Measurement Canada could consider licensing of professional electricity meter dispute investigators to increase business to business dispute resolution capacity

Views: Suggested indicators and methods for monitoring performance

Residential consumers do not seek to know system details, they want reassurance that their meter is accurate

• Measurement Canada must continue to audit that what goes on behind the scenes and reported, is valid and appropriate
• Meter service providers and utilities are willing to discuss what monitoring programs and information they have that may be useful
• As a minimum, Measurement Canada must actively monitor and report dispute statistics, meter and installation compliance rates and the performance of meter service providers and sellers (contractors)

Views: Improving rulemaking openness, transparency, inclusiveness, accountability

The present system is not as open, transparent and inclusive
as desired

• A regulatory advisory committee composed of all interested stakeholders would provide a collaborative forum to identify priorities and deal with new technology, standardization and testing issues in ongoing timely fashion
• Measurement Canada must maintain ultimate control as it is legally accountable for performance and consensus may not always be possible
• easurement Canada should consider fostering the development and growth of consumer groups so they can participate

Other views or issues raised: 

A compliance and enforcement policy is needed so
Measurement Canada staff have the tools needed to enforce
the rules in a consistent manner

• The competency of meter industry personnel is of potential concern and may need attention in the long term
• The meter approval system is valued but not always keeping up with new technology: increased involvement of manufacturers and use of international standards needed
• Measurement Canada must continue to initially certify meter test board accuracy but need only sample this performance thereafter
•  A flexible approach to accrediting meter installation inspection needed

Other stakeholders should be consulted

Provincial agencies responsible for creating metering rules
in the restructured (deregulated) marketplace

• Electricity retailers in the restructured marketplace
• Individual electricity resellers and their associations such as the Building Owners and Managers Association of Canada
• Residential consumers via consumer associations

Team recommendations for change expected to be available for further consultation by August 17, 2001

Please send us additional comments for this round up until July 13, 2001 to elecreview@ic.gc.ca

Or call:
Dave Morgan (613) 952-0661
Luc Tessier (819) 564-5737
Luc VanOverberghe (519) 680-3815