The current high price of natural gas, for instance, is another factor slowing down investment in new generation and is one of many market conditions affecting Alberta's electricity industry. Again, the short answer is supply. The government must do everything it can to encourage and facilitate substantial and rapid investment in generation. Increased demand is not something we should be encouraging at this time. But more importantly, capping retail prices sends a bad signal to potential generators.
Uncertainty is the foe of investment.
Even with high wholesale prices, this type of government intervention will likely discourage rather than encourage investment in new generation. That is certainly not the signal the government wants to send at this time.