9 Reasons to Shop Local for Your Energy

By: David Morales And Deanna McArthur

When you hear the words “shop local” what comes to mind? We would guess that a majority of our readers would immediately think about farmers markets, independent restaurants or even boutique clothing stores.

Did anyone think “energy provider”?

Choosing local independent businesses for your services, shopping, dining, and other needs has many benefits, including, strengthening your local economy, creating a healthier environment, creating jobs and opportunities, giving back to your community, and more.

The same benefits can be said about choosing a local energy provider.

Alberta’s electricity market was de-regulated two decades ago which meant the doors were opened for competitive participants to enter the market. Utility Network and Partners (UTILITYnet) was an integral part of helping entrepreneurs, cooperatives, and municipalities enter the market through its Energy Marketer program.

Spot Power was the first independent competitive Energy Marketer to enter the market in 2009, and today there are many others vying for your business. We opened the door for others to follow the path we chartered.

Some Albertans are not happy about de-regulation, but we believe they are overlooking the many perks that competitive market participants have introduced to the utilities market. Last year our energy rates were lower than they were a decade ago; so why are some consumers unhappy?

Since de-regulation, small Energy Marketers like Spot Power have kept larger utility companies in check. If competitive participants didn’t exist, rates would be higher, penalties for account cancellation would still be the norm, and customer care wouldn’t be top of mind. In the past customers were simply an asset of the big utilities. Today, companies are fighting for your business.

Below are nine examples of the unique benefits that were born out of de-regulation. Many are items that other large utilities don’t offer and some, we believe, would not have been introduced without a competitive market.

Local Customer Care Team - Speak with helpful, friendly individuals who understand the ins and outs of Alberta’s energy market. Spot Power, along with the other UTILITYnet Energy Marketers are working to keep jobs in the province. Many of the large utility companies in Alberta have shipped customer care and information technology jobs out of province or offshore. Take a guess: which country to you think ATCO, ENMAX and Direct Energy outsourced Alberta jobs to?

Budget Billing – This option allows customers to gain stability and predictability in their monthly energy bill. With budget billing, customers pay a set price each month based on historical usage data and true-up twice annually.

Pick A Date – Introduced in 2017 and offered exclusively by UTILITYnet Energy Marketers like Spot Power, this program allows customers to choose what day of the month they pay their energy bill. Customers can schedule their payments so they’re convenient for them.

Senior’s Discounts – Created to support those who have helped to build this province into what it is today and may be on a fixed budget. We offer ongoing discounted energy pricing for seniors aged 60 and older.

Green Energy Options – In partnership with Green Alberta Energy, consumers have the option to green any percentage of the electricity they consume from 5% to 100%.

Micro-generation Premiums - Through a partnership with UTILITYnet, and Green Alberta Energy, solar PV micro-generation customers receive a 1.0 cent cent/kWh premium on electricity exported back to the grid through the Light Up Alberta Program.

No Exit Fees – Originally introduced by Spot Power and now replicated by other providers in the province, customers are never locked in and never face cancellation fees. Cancel at any time with just 10 days’ notice.

Community Initiatives - Many competitive market participants have introduced community partner programs where they donate a portion of their income to worthy causes or give back to their local community in other ways.

Referral Programs - A chance for individuals, organizations and charities to earn an extra stream of income by encouraging friends or family to sign up for electricity with companies like Spot Power. They can use this extra cash either for themselves, their business or to support a worthy cause. These unique customer centric programs were developed based on our ability to communicate and listen to our customers. Since the corporate culture of a small business is completely different than that of a large utility company, our focus is not 100% corporate bottom line, and not driven by shareholders expectations. We care about our customers and continually strive to meet their needs.

“We have found that people are looking for fair pricing of energy, accuracy and clarity in billing along with ease of access when choosing a utility company,” said Joanne Mulders, Manager of Customer Service at UTILITYnet.

Mulders has been working in Customer Service for almost two decades and has been managing the local UTILITYnet team since 2014.

“Having a local customer service team is a huge benefit,” said Mulders. “Customers are happy that they do not have to navigate a retailer’s phone IVR (interactive voice response) system to “finally” speak with a customer service representative, located locally rather than a call center in the US or offshore. Calls to our call center are usually answered promptly and overnight voice mails are returned on the next business day.”

But it’s not necessarily all about the services provided when it comes to who Albertan’s choose for their energy needs.

“Customers also want to know that they are making a difference with their energy purchase,” said Mulders. “They want to choose a supplier that supports their social causes or that support their same beliefs.”

A Threat to Small Local Energy CompaniesLast June the provincial government introduced Bill 16, An Act to Cap Regulated Electricity Rates. The bill allows the government to place a cap of 6.8 cents/kWh on the Regulated Rate Option (RRO) for electricity until May 31, 2021.

The funding for the cap will come from the revenues generated by the Carbon Levey, and will only be paid to the RRO Utilities, Rural Electrification Associates (REAs) and the City of Medicine Hat. When the cost of energy charged by generators increases beyond a certain point, funds from the carbon levy will be used to subsidize these utilities to ensure the RRO customer retail price doesn’t go over the cap of 6.8 cents/kWh.

The Electricity Price Cap will benefit large utility companies in Alberta by guaranteeing them a marginal profit and will leave smaller utility companies on their own to cover the increased costs charged by generators. Consumers on the government’s RRO make up only 50% of Albertans. Every Albertan pays into the Carbon Levy, so why should only half of the population receive the benefits of the price cap?

This new policy has tilted the playing field to benefit the big utilities and today our biggest competitor is the government itself. The new policy will cost taxpayers an estimated $700 million according to a White Paper by EDC Associates Ltd, an independent energy-consulting firm from Calgary, with the money being paid to the big utilities.

Competition creates innovative and interesting products and services, all of which benefit consumers. Is it fair to expect small businesses to not only compete with the large utility companies, but also our own government? Unfortunately, if we are not careful this new government policy could put some small companies out of business and will hurt the private sector.

It is important to reflect and ask yourself, where do the profits earned by companies like Direct Energy, Just Energy, and Hudson Energy go? Out of province. Why is the government turning a blind eye to some of Alberta’s utilities exporting jobs out of the province, while at the same time guaranteeing some of them a profit and subsidizing them to keep the RRO below 6.8 cents/kWh?

Even with the introduction of the price cap, competitive market participants continue to work hard to be the best choice for Albertans. In February, new 6-year price protection plans were released that offer consumers a bridge over the volatility Alberta’s electricity market will face as the province begins to add more renewable energy sources to the grid and coal plants begin to shut down. These price protection plans provide rates BELOW the government’s cap of 6.8 cents/kWh.

Now more than ever, it is important for consumers to understand that they have a choice when it comes to buying their energy. We encourage you to get off the government RRO and shop around to ensure you are not overpaying for electricity. There are lots of competitive companies offering great rates.

If you don’t shop with Spot Power, that’s ok, maybe we aren’t the right fit for you. But we strongly encourage you to help keep jobs in the province by shopping locally and exploring the many Alberta owned and operated Energy Marketers who have helped to create the innovative and diverse energy market that exists in Alberta today.

Every one of the below Energy Marketers has a compelling story behind them. EMCO Energy is investing in disruptive technology, Echo Energy and Mountain View Power are municipal ventures investing back into their local communities, and Sandstone Energy is donating 100% of its net income on the sale of energy to the Calgary Public Library Foundation. These are only a few of the many stories.

Adagio Energy
Bow Valley Power
Brighter Futures Energy
Camrose Energy
DGN Power
ENRG Power
Echo Energy
EMCO Energy
Fluent Utilities
Foothills Energy Co-op
Get Energy
Mountain View Power
NewGen Energy
Oasis Power
Reset Energy
Sandstone Energy
Solarmax Power Inc.
UTILITYnet.ca
Vector Energy

Last year, as a proud Alberta company, UTILITYnet celebrated 40 years in business. We are passionate about keeping jobs and profits in the province and hope you will choose to support independent retailers in Alberta.