Rethinking regulation

The new liberal leadership in Ontario is preparing to enact reforms in itselectricity market. And the market itself is weighing the benefits of deregulationversus reregulation. The former Conservative government reverted to price controlswhen prices soared after the May 2002 competitive electricity market launch,but the new premier, Dalton McGuinty, plans to lead the market back down thecompetitive path.

Whichever model it chooses, Ontario needs to get the pricing right. Inaccuratepricing signal

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