Canadian provinces sold off or partly sold off their electrical generation entities as a result of financial pressures, ideological shifts, market reform theories and the thought that the private sector would be more efficient. Given that the electrical generation and distribution capability is now becoming a key dependency for many services, it may be time for the provinces to consider taking ownership of those capabilities.
First, the electrical generating and distribution capability is now becoming a key dependency across multiple sectors. Priorities include promoting electric heating, electric cars, and increased digitalization (including data centers). In brief, the owners of this capability will be able to affect multiple aspects of an individual’s life. This may include rate setting for profit taking, the limitation of the service, or even cutting back the service as a means of leverage. In brief, this capability’s power may not belong in the hands of those seeking to generate wealth but may better belong in the hands of those accountable to the population.
Second, given the reliance of the population and several significant projects on the power distribution grid, it may be prudent to ensure that those projects cannot “be held hostage” by those that seek to maintain profit levels or otherwise leverage their key control.
Third, the government is in a better position to protect vulnerable populations against rate increases, disruptions, and similar kinds of events. The focus of private sector entities is on profit, plain and simple. The government, on the other hand, has the ability to establish and administer programs that would directly protect those populations.
Finally, the provincial government can move funds and resources quickly when needed (such as for contingency planning or disasters). These become internal movements.
Concurrently, the government should not be able to simply use the utility as a revenue generator and become susceptible to the same pressures as the private sector. It would be prudent to limit the government’s ability to act unilaterally to turn the utility into its own profit-generating machine.
That being said, we may wish to consider looking at transitioning the utility to a Crown Corporation.