Canadian Industrial Outlook: Electric Utilities—Spring 2017

The Conference Board of Canada, 18 pages, July 31, 2017
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This report examines the short-and medium-term economic and profitability outlook for Canada’s electric utilities industry.

Document Highlights

Canadian Economy—After two years of lackluster performance, Canada’s economic growth is expected to improve this year and next. Increased government spending and business investment are expected to support improved growth prospects, with the three westernmost provinces leading the charge. Improved economic performance will boost electricity demand.

Canadian Industry Prowess and Complexity—Canada is a global leader in clean electricity generation and has one of the world’s cleanest generation mixes. But there are clear differences across regional electricity markets, as unique as the geography and resource endowments of Canada’s regions themselves.

Price Increases—Electricity prices will continue to rise across Canada. Higher prices are needed to support increasing investment requirements and to help offset the rapid cost increases that have been prevalent across the industry. But price increases will moderate over the forecast, relative to the pace observed in previous years, as utilities and governments will attempt to limit the impacts of higher prices on consumers.

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