Power Failure: Addressing the Causes of Underinvestment, Inefficiency and Governance Problems in Ontario's Electricity Sector

Economic and policy problems plague Ontario’s electricity sector six years after the government’s initial attempt at market liberalization in 2002. Several changes of direction later, the electricity sector has a hybrid structure of regulation and market forces, with a central procurement role assigned to the Ontario Power Authority (OPA). This paper questions whether a central procurement approach represents the best means of achieving a well-functioning electricity sector and, if not, what better approach exists.