Small businesses in Alberta are looking forward to a positive jolt as implementation of the next phase of electricity deregulation is now under review by the provincial government.

Pressure from small and medium commercial operations, those using less than 250,000 kWh per year, has helped convince the province to reconsider whether it should move forward as planned on January 1, 2004.

That date could now be pushed back by more than two years to July 2006, allowing business owners more time to familiarize themselves with the pending changes.

Without the current Regulated Rate Option, a transitional mechanism originally set to expire at the end of this year, small business electricity users would have automatically been defaulted to the pool price flow-through rate, where electricity charges would vary from month to month depending on market conditions, had they not signed a contract with a licensed retailer by January 2004.

But with only two retailers active in the market, ENMAX Energy and iQ2 Power Corp., competition for those contracts is limited. It could really almost be termed non-existent, as iQ2 is concentrating on businesses that work together – buying in bulk for a larger group of users – rather than seeking individual clients.

A third player, Direct Energy Marketing Ltd., is awaiting regulatory approval of its purchase of the rights and obligations to service ATCO gas and electric customers before entering the marketplace.

“We’re certainly considering an extension (of the deadline),” said an Alberta Energy spokesperson.

“We’ve heard from small and medium commercial consumers who have told us that they’re not ready to choose. We always said we would monitor the developing market. This would simply be an adjustment of the pace of implementation.”

A final decision is expected in the immediate future, likely to be made by the provincial cabinet.

For the Canadian Federation of Independent Business (CFIB), which represents 9,200 members in Alberta, the possibility is viewed as a positive step.

“We think this is good news, only because competition does not yet exist,” said Corinne Pohlmann, the federation’s director for provincial affairs for Alberta and the Northwest Territories. “One of our biggest concerns come January 1 is that with only one company as an option, how is that an option?”

It is not the federation’s only concern. A CFIB survey shows that more than 25 per cent of its members have no idea how much power they use or what sort of contract they’re on or not on. Additionally, 54 per cent feel they don’t have enough information on managing their electricity costs.

“We’re very active in getting our members up to speed and getting them the information that they need to know. Unfortunately, a lot of information has just started to be distributed in the last several weeks rather than the last several months,” said Pohlmann.

Reaction from Enmax, meanwhile, has been muted. The company has said it is late to change the timetable but regardless, it is business as usual.

Electricity contract offers for small businesses have been made available in the past and will continue to be made available, a company official said.

Any delay in the implementation schedule will also have little effect on the province’s new utilities consumer advocate.

“There’s no shortage of issues. There’s no shortage of questions and we will continue to deal with those as we move towards becoming fully operational,” said Eoin Kenny, spokesman for the advocate’s office.

“We welcome any move that gives consumers adequate time to make an informed choice on the purchase and management of their energy services,” he said.