Regulated Rate Option Prices are Increasing

The cost of electricity is set to increase by nearly 19% for ENMAX Regulated Rate Option (RRO) customers in June. The Alberta Government and MLAs from both political parties are advised to remind customers that they have options to manage anticipated higher electricity bills. In particular, many consumers currently struggling with paying their monthly energy bills can minimize their financial stress simply by getting off the government’s RRO.

Inflation, natural gas costs increases, supply chain issues, the Federal Carbon Tax, the coal generation phase-out, and other factors such as growing post-pandemic demand for power, complicate the picture. Electricity is simply more expensive these days.

However, the planned increase in regulated rates published by the Alberta Utilities Commission is dramatic. In June, the rates will increase to an average of 11.699 cents/kWh. Compared to rates offered by small competitive retailers like Spot Power, consumers using roughly 1,000 kWh per month will pay approximately $40 extra on the RRO in June.

Over the last 16 months, the government rate has been higher than the real market rates every month. For many customers, this has resulted in them paying up to $400 to $500 extra over this period. Roughly half of the residential consumers in Alberta are needlessly overpaying every month and MLAs from both parties know this. Although an electricity rebate is coming, a more cost-effective solution would have been to simply promote competitive rates.

A recent CBC Calgary article (“How can you get the best deal on power in Calgary? We crunch the numbers”) also outlined ways in which customers can find savings when comparing rates across providers in Alberta. Administration (admin) fees are often overlooked by customers when comparing retailers and should be considered in the decision-making process. Spot Power’s fixed admin fee (compared to a per day rate) reduces costs to the consumer and provides predictability on invoices.

Spot Power is a division of Utility Network & Partners Inc. (“UTILITYnet”) and offers electricity, natural gas, and Internet services. Spot Power is committed to supporting the local community through its Spot Cares program by giving back 10% of all profits on energy sales to charitable organizations such as the Calgary Seniors’ Resource Society and Spinal Cord Injury Alberta.

For a list of other Energy Marketers under the UTILITYnet umbrella who are also offering competitive rates lower than the RRO, visit www.utilitynet.net/local-energy-marketers.html.