Expanded scope for electricity utilities to deliver savings to their communities
Feb 16, 2012, 15:36 ET
Drummond report recommends utilities begin delivering water and other services
TORONTO, Feb. 16, 2012 /CNW/ - The Electricity Distributors Association (EDA) is pleased to see that economist Don Drummond believes electricity utilities can play an even greater role in serving their communities by delivering more than just electricity.
"Mr. Drummond has picked up on some of the key recommendations from our reports, Electricity is the Answer and The Case for Reform, which we shared with him last year," says Charlie Macaluso, CEO of the EDA.
One key recommendation common to both the EDA and Drummond reports is that electricity utilities should expand the scope of their operations to deliver other services such as water. "It's a natural place for us to leverage our expertise," says Jim Keech, Chair of the EDA, noting that some utilities already deliver multiple services. "Expanding the role of electricity utilities can deliver more value to communities, more savings to ratepayers and taxpayers and more convenience for our customers."
"Electricity utilities have pursued scale efficiencies through mergers and amalgamations that reduced our numbers from about 350 to 75 utilities over the past decade. Consolidation continues to take place today where the benefit is clearly demonstrated," says Macaluso. "What we now need is action from government to enable electricity utilities to consider economies of scope as they look for greater efficiency in their operations."
The Association's recommendations have already received significant high-profile support from Ontario's Auditor General, its Environmental Commissioner, and now Mr. Drummond.
The full EDA reports, Electricity is the Answer: The EDA's Roadmap for Delivering Ontario's Electric Future and The Case For Reform: How Regulatory Streamlining Could Benefit Ontario Electricity Consumers are available on the Association's website at www.eda-on.ca.
About the EDA
The Electricity Distributors Association (EDA) is the voice of Ontario's local electricity distributors, the publicly and privately owned companies that safely and reliably deliver electricity to more than 4.7 million Ontario homes, businesses and public institutions.
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