IRAC requires full review, says Opposition MLA

Opposition MLA Jamie Fox is calling for a full review of the Island Regulatory and Appeals Commission following a report from P.E.I.'s auditor general criticizing the commission for a lack of transparency when it comes to setting fuel prices.

The PC MLA welcomed the auditor general's report, saying it "opened the door" to a larger review looking at more of the decision-making processes for which the commission is responsible.

"How are they making decisions when it comes to land transfers?" Fox said. "Water and sewer rates? Tenant [rental] increases? Maritime Electric [rates]?"

It was Fox who requested the review by Auditor General Jane MacAdam in 2017 when Fox was a member of the legislature's audit committee. While he had hoped MacAdam would look at other aspects of the commission, her report dealt solely with the way it regulates fuel prices.

Now Fox is calling for a full review of IRAC to be conducted by a new committee of the legislature.

"We should have a special standing committee convened, made up of members of the legislative assembly, possibly members of the public at large, hold hearings on IRAC and their role in 2019," Fox said. "We have an organization that hasn't been reviewed for 26 years."

No need to review regulator, says minister

IRAC confirmed the commission has not undergone a review since it was first established close to three decades ago. Beyond that, a spokesperson said the commission would not be offering any further response.

P.E.I.'s cabinet minister responsible for IRAC, Education Minister Jordan Brown, said there is "constantly a need" to review the various pieces of legislation overseen by IRAC, but he said a review of the commission itself is not required.

"It's not something where we would think there would be a need to have a wholesome review of the body itself that is the regulator," he said. "There's always a possibility that we can look to tweak different parts of different processes."

Include IRAC in review of tenant rights, says group

But Hannah Gehrels with the advocacy group PEI Fight for Affordable Housing pointed to a review of tenant rights under the Rental of Residential Property Act promised by government. She said it's her understanding IRAC will conduct that review, but she said IRAC should instead be part of the review.

She said there is confusion among renters as to what rights they have and the process involved in appealing an eviction. She said there are also complaints about the length of time that process takes through IRAC.

"We're definitely interested in seeing a full review of IRAC that has public consultation, that is meaningful and that has transparency," Gehrels said. She said that review should be done by a third party, and needs to go beyond the laws IRAC is regulating to also include "how they are regulating and if they're fulfilling even the current mandate that they do have."

AG cites lack of explanation on price changes

In her review looking at how IRAC sets fuel prices, MacAdam said "IRAC needs to be more transparent to Islanders on how it sets petroleum prices and the key factors supporting each price change."

MacAdam found there was no document the public could access explaining the methodology used by IRAC to set fuel prices. The commission has since posted a document on its website.

While each of the Atlantic provinces has some form of price regulation on fuels, MacAdam said P.E.I. is the only province that does not use a strict formula-based system for setting prices.

She said that provides IRAC with discretion to consider factors including seasonal changes in demand, political issues in oil-producing countries and the strength of the Canadian dollar. But she said the commission has not been providing sufficient rationale to the public to explain decisions made to adjust fuel prices.

The commission said it has implemented or is working to implement all of the auditor general's recommendations.

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