Alberta electricity prices are expected to almost double starting in April. We can thank the phasing out of some Alberta coal plants, the carbon levy and a general market upswing for that.
AESCO is predicting an increase in the electricity pool price of 81% and according to an article by CBC, the unregulated electricity rate for April 2018 is expected to hit 9.28 cents per kWh. If you are a regulated rate customer, your rate will not exceed the government cap of 6.8 cents per kWh.
How Will This Effect Your Bill?
The good news is that the actual energy cost is only a portion of your bill, so your bill will not double, thankfully. The best way to determine whether this rate hike will impact you, is to forecast the additional cost based on your usage from last year’s April bill. Use the projected rate of 9.28 cents per kWh (6.8 cents if you are a regulated rate customer) to see how much extra you could be paying. While a recent Calgary Herald article stated it’s nothing to worry about, it’s best to do your own calculations if you believe you are a high use household, because we know that the rate you pay can make a big difference.
What Can We Do?
With electricity rates set to increase significantly, we are encouraging everyone to take another look at their utility bills and reconsider their rate plan strategy. Typically, Bill Crush has been recommending variable rates plans in order to take advantage of the lowest rates in Alberta. But with this coming rate hike, the variable rates will be higher than the regulated and fixed rates for the forseeable future. We are urging our readers and past clients to look at a fixed rate, which we expect will be lower than the variable rate, and even the regulated rate. While most fixed rate plans are a minimum of one year, you may be allowed to switch back to variable at any time. Check with your energy provider. Fixed rate plans are sitting at roughly 5.3 cents – 5.99 cents per kWh on average.
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