The P.E.I. government is looking at making it mandatory for Maritime Electric to invest in energy conservation before it looks to buy more electricity.

Energy we don't use is the least expensive, says Energy Minister George Webster. (CBC)

The plan is part of the government's new energy strategy released last week.

"The most cost-effective energy is energy that we don't use," said Energy Minister George Webster.

Under the plan, the government would make it mandatory for the utility to invest in energy conservation before investing in new energy capacity.

It's called least-cost procurement, and it's something for which Eco-PEI's energy co-ordinator, Kate McDonald, has been lobbying. McDonald said it's been a successful program in other locations.

"It's resulted in significant increases in electric efficiency investment," said McDonald.

A report earlier this year said P.E.I. could reduce electricity use by 11 per cent in 10 years by encouraging homeowners and managers of office buildings to switch to energy-efficient products: compact fluorescent lighting and energy-saving appliances and office equipment.

New fees for ratepayers

While reduced electricity would mean lower bills, it's not all good news for consumers. Programs to encourage energy efficiency cost money, and Maritime Electric would collect money from consumers to pay for them.

Mike Proud, manager of P.E.I.'s Office of Energy Efficiency, said in the long run consumers would pay less.

"Rates may increase to fund the programs that are in place to make the reductions that are necessary, but at the same time, the customer's bill goes down because they're using less electricity," said Proud.

As part of the plan, Eco-PEI wants a third party audit every year to make sure ratepayers are getting their money's worth and that targets are being met.