1st Session, 37th Parliament,
49-50 Elizabeth II,

House of Commons of Canada

BILL C-207

An Act to establish the Energy Price Commission

Preamble

Whereas the price of energy affects the cost of most commodities and goods and the health of interprovincial trade in all parts of Canada;

And whereas it is essential for the stability of the cost of living and the growth of interprovincial trade across Canada that energy prices be regulated and that unjustifiable increases be prevented;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short title

1. This Act may be cited as the Energy Price Commission Act.

Definitions

2. The definitions in this section apply in this Act.

``Commission ''
« Commission »

``Commission'' means the Energy Price Commission.

``energy''
« énergie »

``energy'' means motor fuel, heating oil or electric power.

``Minister''
« ministre »

``Minister'' means the Minister of Industry.

``motor fuel''
« carburant »

``motor fuel'' means any hydrocarbon fuel that is to be used in the engine of a motor vehicle.

``supply contract''
« contrat d'approvision -
nement »

``supply contract'' means a contract for the supply of motor fuel over a period of time by delivery direct to the vehicles of the purchaser or to storage owned by or operated for supply to the purchaser.

``Tribunal''
« Tribunal »

``Tribunal'' means the Competition Tribunal established by subsection 3(1) of the Competition Tribunal Act.

Commission established

3. (1) There is hereby established a Commission to be known as the Energy Price Commission, consisting of not more than five full-time members and not more than ten part-time members to be appointed by the Governor in Council.

Term of office

(2) A full-time member shall be appointed to hold office during good behaviour for a term not exceeding seven years and may be removed at any time by the Governor in Council for cause.

Second term

(3) Subject to subsections (4) and (5), a member may be appointed for a second term, but not a third or subsequent term.

Age limit

(4) No person may continue as a member of the Commission after attaining the age of 65 years.

Disqualifi-
cation

(5) No person may be appointed to or remain in office as a member of the Commission who

    (a) is not a Canadian citizen; or

    (b) is or becomes a shareholder, director, officer, partner or employee of a corporation or enterprise whose business includes the exploration, transportation, marketing, manufacture or sale of energy that is under the jurisdiction of the Commission or has any financial interest in any such corporation or enterprise.

Exception

(6) Paragraph (5)(b) does not apply to an interest that vests beneficially in a member by will or succession and is disposed of absolutely by the member within three months of the vesting.

Spouses

(7) For the purpose of this section, a position or interest described in paragraph (5)(b) that is held by the spouse of a member is deemed to be held by the member.

Presiding officers

4. The Governor in Council shall name one of the full-time members to be the Chairperson of the Commission and two of the full-time members to be Vice-Chairpersons of the Commission.

Remunera-
tion of full-time members

5. (1) A full-time member shall be paid such remuneration and reimbursement of reasonable expenses as the Governor in Council may order.

Expenses of part-time members

(2) A part-time member shall be paid such reimbursement of reasonable expenses as the Governor in Council may order.

Head office

6. The head office of the Commission shall be in such place in Canada as is ordered by the Governor in Council.

Panels

7. (1) The Commission may operate in one or more panels of five or more persons named by the Commission.

Quorum

(2) A quorum for transaction of the business of the Commission or a panel is one third of the membership of the Commission or panel.

Open meetings

(3) The Commission and any panel of the Commission must meet in public at a time and place that has been previously advertised to the public, unless the Commission has ordered that the meeting may be held in private in order to protect the confidentiality of a bona fide interest of any person.

Frequency of meetings

(4) The Commission shall meet at least ten times a year.

Object of Commission

8. (1) The object of the Commission is to regulate the wholesale and retail price of energy in Canada.

Powers

(2) In carrying out its object or an investigation referred to in section 11, the Commission has the powers of a commissioner under the Inquiries Act.

Price factors

9. In setting prices of energy, the Commission shall take into account

    (a) the interest of the public in having energy available at a reasonable and consistent price for personal, commercial and industrial use; and

    (b) the reasonable costs of the manufacturer, distributor, wholesaler and retailer of the energy that have been incurred in Canada in respect of the energy.

Sale only at regulated price

10. (1) No person may sell or offer energy for sale at a wholesale or retail price that exceeds a level set by the Commission.

Existing supply contracts

(2) In the case of a supply contract that is in force on October 1, 2001, subsection (1) does not apply until October 1, 2002.

Competition Tribunal

11. If the Tribunal refers to the Commission a question respecting competition in the wholesale or retail marketing of energy, the Commission shall investigate the matter and submit a report to the Tribunal.

CONSEQUENTIAL AMENDMENT

Competition Act

12. The Competition Act is amended by adding the following after section 81:

ENERGY PRICING

energy pricing

81.1 If any matter that relates to wholesale or retail pricing of energy comes before the Tribunal, the Tribunal shall remit the matter to the Commission established by section 2 of the Energy Price Commission Act for investigation and report and shall not make any determination or order on the matter until the Commission has submitted the report to the Tribunal.

Coming into force

13. This Act comes into force October 1, 2001.