Connect with us

Alberta

The electricity price cap in Alberta is gone. What now?

Published

5 minute read

How the electricity price cap removal will affect Alberta utility bills (Photo by Helloquence on Unsplash)

Many Albertans have been reading the news about higher regulated electricity rates in December, after the price cap on energy rates was scrapped by the province. Even though this was announced by the Government of Alberta in late October, as part of the new budget, people only started to hear more about it on November 30. That was when the regulated energy providers announced their new power rates; this time, without a cap on prices. 

The program was created by the NDP government in 2017 to cap energy rates for residential and small business consumers. Regulated rate (RRO) consumers wouldn’t pay more than 6.8 cents per kWh, meaning that any costs above that threshold were paid by the province. The main goal behind the cap was to protect consumers from rate spikes and, consequently, financial uncertainty. 

In order to predict how your energy bills (and your wallet) could be impacted by this change, we need to take a look at historical prices, future market trends and what prices would’ve been this past year without the cap. 

How the 6.8 cents/kWh price cap worked

Regulated electricity rates in Alberta change every month. Although the prices need to be approved by the Alberta Utilities Commission (AUC), they can be affected by multiple factors, including politics, natural disasters, economic reasons and more. 

In the past 10 years, electricity rates in Alberta went as high as 15.06 cents/kWh and as low as 2.88 cents/kWh. The cap provided protection for Albertans as the government subsidized any prices above 6.8 cents/kWh. 

The effects of the electricity price cap in Calgary in 2019

According to the Utilities Consumer Advocate (UCA), regulated electricity rates in the Calgary area (ENMAX) went above the 6.8 cents/kWh during most months of 2019, except for March, April, May and June. 

  • January: 7.727 cents/kWh
  • February: 7.009 cents/kWh
  • March: 5.914 cents/kWh
  • April: 6.067 cents/kWh
  • May: 6.390 cents/kWh
  • June: 6.391 cents/kWh 
  • July: 8.434 cents/kWh
  • August: 8.805 cents/kWh
  • September: 7.590 cents/kWh
  • October: 6.736 cents/kWh* 
  • November: 7.399 cents/kWh
  • December: 7.320 cents/kWh 
*According to the UCA, prices still reached the price cap in October, although they were officially 6.736 cents/kWh. 

This means the average price would’ve been approximately 7.15 cents/kWh, which makes quite a difference in energy bill terms, considering that the average household in Canada consumes around 1,000 kWh per month. After an entire year of high electricity rates, this difference looks even larger. 

The effects of the electricity price cap in Edmonton in 2019

In the Edmonton region (EPCOR), the difference between what consumers paid and what they would’ve paid without the cap is even more noticeable. According to the UCA, regulated prices went above the 6.8 cents threshold in all months except for March. 

Without the cap, the average price per kWh in the Edmonton area in 2019 would’ve been 7.84 cents/kWh. 

  • January: 7.733 cents/kWh
  • February: 7.189 cents/kWh
  • March: 5.991 cents/kWh
  • April: 6.981 cents/kWh
  • May: 6.990 cents/kWh
  • June: 7.231 cents/kWh
  • July: 9.578 cents/kWh
  • August: 10.191 cents/kWh
  • September: 8.2 cents/kWh
  • October: 7.342 cents/kWh
  • November: 8.63 cents/kWh
  • December: 8.069 cents/kWh 

Are my electricity bills going to increase in the months ahead?

Now that the price cap is gone, many households and small businesses are concerned about facing higher utility costs in the months ahead. 

Power prices reached historically low averages in 2017, but the average rate in Alberta was 7.3 cents/kWh for the 2002-2018 period, which is considerably above the price cap, especially in cents/kWh terms.

The future of electricity prices is still unclear. Consumers will have to wait and see whether rates will go up or down. We can expect to see RRO prices fluctuate slightly more now that they are free to go above the 6.8 cents/kWh threshold, as it happened in December and for most of the time in 2019.

EnergyRates.ca is a leading energy rate comparison website. The tool enables you to compare the main natural gas and electricity retailers and their rates across Canada.

Follow Author

More from this author

Alberta

Running Reins Ranch in Red Deer County picks up $250,000 grant from province

Published on

Running Reins Ranch partners with members of the local Indigenous community to set-up teepee accommodations and host regular cultural programming for guests.

Tourism investment fuels growth in rural Alberta

Alberta’s government continues to support regional tourism opportunities across the province, generating jobs and new tourism destinations for locals and visitors alike.  

Ahead of World Tourism Day 2023, Minister of Tourism and Sport Joseph Schow visited Running Reins Ranch to see first-hand how tourism investment grants are making a difference in the lives of Albertans.

“Alberta’s government is proud to invest in growing visitor destinations like Running Reins Ranch that celebrate the richness and diversity of Alberta’s rural destinations and provide a sustainable tourism experience for visitors to enjoy.”

Joseph Schow, Minister of Tourism and Sport

As part of the Tourism Investment Program, Running Reins Ranch received a $250,000 grant from Travel Alberta.

“Our investment will support the building of additional unique accommodations at the ranch that will triple their capacity, emphasize their year-round offerings and create five new full-time jobs. This investment in Running Reins Ranch is a perfect example of how Travel Alberta is driving tourism growth in rural communities across the province.”

Jon Mamela, chief commercial officer, Travel Alberta

Running Reins is located east of Innisfail, offering cabin and teepee accommodations and a wide range of outdoor activities for visitors looking to combine the beauty of the Prairies with farm experiences for a one-of-a-kind getaway.

Right to Left: Minister of Tourism and Sport Joseph Schow, Owners of Running Reins Ranch Terry and Janice Scott, and team member Grace Finlan.

“This funding is a game-changer for us and our business. We are excited to bring our vision to life and provide visitors with unforgettable experiences while supporting the economic growth of the surrounding community.”

Janice and Terry Scott, owners, Running Reins Ranch

Tourism is Alberta’s No. 1 service export sector. In 2019, Alberta welcomed 34.6 million visitors, generating $10.1 billion in expenditures and supporting more than 80,000 full-time jobs. The Tourism Investment Program is Travel Alberta’s commitment to investing $15 million annually with communities and operators to develop the province’s tourism sector. Developing Alberta’s rural and agri-tourism sector is an essential component of the government’s efforts to grow Alberta’s tourism economy to more than $20 billion by 2035.

Quick facts

  • In 2022-23, Travel Alberta funded 166 projects across 73 communities – about 75 per cent of the projects and 70 per cent of the funding were in smaller urban and rural areas of the province.
  • In December 2022, Alberta’s government released its Economic Development in Rural Alberta Plan, with supporting initiatives that demonstrate the government’s commitment to building healthy and prosperous communities across rural Alberta and Indigenous communities.
Continue Reading

Alberta

Company at centre of E. coli outbreak at Calgary daycares faces licensing charges

Published on

Alberta Health Minister Adriana LaGrange speaks to the media about an E. coli outbreak linked to multiple Calgary daycares in Calgary on Tuesday, Sept. 12, 2023. THE CANADIAN PRESS/Jeff McIntosh

By Colette Derworiz in Calgary

The company that runs a commercial kitchen at the centre of an E. coli outbreak that has infected hundreds at numerous Calgary daycares has been charged with operating without a business licence.

The City of Calgary announced Wednesday that Fueling Minds Inc. and its two directors face a total of 12 charges under municipal business bylaws and face a total fine of up to $120,000.

The company declined to comment on the charges in an emailed statement Wednesday afternoon.

Meanwhile, Alberta chief medical officer Dr. Mark Joffe said the number of cases has plateaued at 351, and tests and interviews indicate the cause of the outbreak was meat loaf and vegan loaf.

He said there are also 37 confirmed secondary cases and four children remain in hospital.

Fueling Minds provided meals to six of its own daycares that were affected by the outbreak, which was declared Sept. 4, and also to five separate daycares.

The city alleges Fueling Minds did not have the proper licence to serve those other five.

Joffe said the investigation into the cause of the outbreak included interviews with hundreds of parents and daycare staffers and the testing of 44 food samples.

“We believe that meat loaf and vegan loaf meals that were served for lunch on Aug. 29 most likely contained the E. coli bacteria that led to these infections,” said Joffe.

“Unfortunately, neither of these items could be tested as they were either eaten or discarded before this outbreak was identified.

“While we now have a likely source, what we do not know exactly is what was contaminated or how.”

The company’s statement said the “exact source of the infections has not yet been identified” and it continues to work with Alberta Health Services on its ongoing investigation.

Joffe said the province is to hire a third party to verify its work and findings.

Premier Danielle Smith said former Calgary police chief Rick Hanson would lead a panel to investigate what went wrong and make recommendations on how to make commercially prepared food safer in daycares.

Smith said the panel does not have a set timeline, but she expects to hear from him monthly and would implement interim recommendations if necessary rather than wait for the final report.

“Mr. Hanson will be joined by Alberta parents, childcare operators, food service operators, and food safety and public health experts,” said Smith.

“The panel will be examining all aspects of this tragic situation, large and small, as well as taking a full broader look at the legislation and regulations that govern food safety in our province.”

Smith said she met with parents of affected children, and a policy change they suggested was posting kitchen health inspection reports in a daycare rather than just online.

Health Minister Adriana LaGrange and Searle Turton, minister for children and family services, are already reviewing food handling in commercial daycare kitchens.

The kitchen remains closed and in recent months has been flagged for numerous health violations, including food transportation concerns.

Diana Batten, the Opposition NDP critic for childcare and child and family services, said Wednesday’s developments were a good start to getting answers.

“This will really help some of the families I’m speaking with,” she told reporters.

“However, it brings up or illustrates there’s a lot of problems inside the system. We heard Premier Smith talk about how we should trust now that the system is safe. Why? We continue to identify more concerns.”

Batten said a panel isn’t going to help solve those problems.

“It’s just spending more money and, honestly, putting a Band-Aid on what is honestly a huge public health crisis.”

The province has promised parents affected by the closures in the original 11 daycares a one-time payment of $2,000 per child to cover off financial hardship. Those facilities were closed Sept. 4 but have since reopened.

Eight more daycares faced closures or partial closures in the days that followed as secondary cases were identified.

Smith said last week that the compensation program would only be available to parents of the 11 daycares at the root of the outbreak.

Turton, however, confirmed parents affected by the later closures would also be eligible for the one-time payments, and that was the plan all along.

“The program hasn’t expanded,” said Turton.

“It’s important to note that just more daycares since the original announcement have actually become eligible for those payments.”

— With files from Dean Bennett in Edmonton

This report by The Canadian Press was first published on Sept. 27, 2023.

Continue Reading

Trending

X