The Higgs government has introduced legislation to reduce the volatility of energy prices and enable retailers to recuperate their costs while continuing to provide consumers with fair market prices.
An Act Respecting Petroleum Products Pricing is meant to ensure consumers are provided with the lowest price possible for fuel without jeopardizing the supply.
“When it comes to fuel prices, New Brunswickers have faced a great deal of uncertainty since the beginning of 2022,” said Mike Holland, minister of Natural Resources and Energy Development.
“Due to a series of global events, market prices have experienced unprecedented volatility, resulting in a record number of interruptions in gasoline, diesel and heating oil prices.”
New Brunswick began regulating the price of petroleum products in July 2006.
But Holland said the existing legislation has been less effective in the current market and makes New Brunswick appear out of step with neighbouring provinces.
One proposed amendment would give the Energy and Utilities Board (EUB) discretion when it comes to setting prices for petroleum products.
Holland said regulating petroleum products is becoming more difficult and the strict formula used in the past is no longer an option.
He added that new federal regulations in 2023 will create more uncertainty in regulated pricing.
“Shifting from a regulation framework that is 100 per cent formula-driven, to one that allows the EUB to use discretion, will help the regulated price react better to changes in market prices,” said Holland.
“These amendments will also make New Brunswick’s regulated price framework similar to our neighbours, Prince Edward Island and Nova Scotia, where both are allowed significant amounts of discretion in determining their regulated prices.”
Although these proposed changes would not help with the rising cost of energy, Holland said they would mitigate some of the daily volatility.
The changes would take effect once the bill is passed in the legislature and receives royal assent.
