Industry-regulator dialogue on energy efficiency/demand side management

An IndEco project report
IndEco has prepared a report that details the outcome of a dialogue between Canadian utilities and regulators on energy efficiency/demand side management (EE/DSM). The Canadian Electricity Association, the Canadian Gas Association, the Ontario Energy Board and the Alberta Utilities Commission collaborated on the development of a series of four workshops over a two-year period to discuss topics of mutual interest relating to energy efficiency and DSM. The report summarizes the workshop discussions on issues such as delivery models, rate design and program measurement and evaluation and provides insights on the dialogue process, lessons learned and topics for future discussion.

Key lessons

The following are the key lessons learned regarding the appropriate regulatory model for EE/DSM:
  • The regulatory model for EE/DSM should be tailored to local circumstances
  • Appropriate program design and delivery is essential to the success of the regulatory model
  • EE/DSM has become an important corporate goal for utilities involved in regulated EE/DSM.

The following are the key lessons learned regarding measuring EE/DSM success:

  • It is important to measure EE/DSM success
  • Measuring EE/DSM success accurately is difficult
  • Measuring free-riders is a key contentious issue that must be addressed
  • Setting EE/DSM targets requires a balancing of interests
  • Measuring EE/DSM success may receive greater regulatory scrutiny than a supply side initiative of similar scale
  • EE/DSM has been successful in the past and should continue in the future.

The following are the key lessons learned regarding the role of rate design in EE/DSM:

  • There is a potential disconnect between the motivations of industry, regulators and consumers related to EE/DSM
  • Smart meters can be effective in reducing peak demand
  • Alternative rate designs are becoming more prevalent
  • The jury is out on revenue decoupling.

More information

The report can be downloaded below and is also available at: or The dialogue will also be the focus of a session on Energy Efficiency/DSM at the CAMPUT conference taking place April 20-23 in Banff.

Please note that the report appendices are very large and may take a long time to download, so we have included a link to download a PDF copy of the report without the appendices.
Report without appendices (133 kB)

Report including appendices (8,017 kB)

Related information

IndEco offers a variety of Services related to Energy Efficiency and Demand Side Management. Please Contact us to find out more.