Alberta introducing legislation to stabilize electricity rates, educate customers about RRO
Alberta is introducing new legislation aimed at preventing spikes in electricity prices.
Default electricity rates will be set for each provider every two years.
The province says this will significantly reduce rates for people who are unable to sign a competitive contract, including people with bad credit, seniors, or people in rural Alberta who don't have other provider options.
"Albertans should not dread opening their bill each month. Unpredictable power costs make it hard for families to plan their household budgets, that makes it hard to have certainty for the future," Premier Danielle Smith told reporters on Thursday.
In addition to the new set rates, the Regulated Rate Option (RRO), which is provided to customers who can't sign a competitive contract, will be renamed to the Rate of Last Resort.
The province says this will better help consumers understand the rate they're paying, and encourage them to find another option if they can.
"When Albertans go to sign up for their electricity, more often than not, they're automatically enrolled in this option," Smith said.
"But calling it the regulated rate option is misleading. It makes it sound stable and predictable. When the truth is it is exactly the opposite. The power rate swings wildly from month to month, depending on the weather and what's going on in the world."
Retailers will also be required to notify customers on the RRO about which plan they are on.
"After a certain period of time, 90 days, if you sign up new, or if you're currently on it, they have to go back to each consumer and say, 'Do you know what rate you're on? Do you know what that means? Would you like to choose?'" Nathan Neudorf, minister of affordability and utilities said.
Neudorf said the changes would be implemented on Jan. 1, 2025.
Opposition Leader Rachel Notley doesn't think the plan will give low-income families an "immediate relief."
Epcor and Enmax, two of the province's main electricity providers, told CTV News they look forward to working with the province on the proposed legislation.
The province says about 29 per cent of residential customers are currently on the RRO, and 32 per cent of commercial customers and 46 per cent of farm customers also use the RRO.
According to the Alberta Utilities Commission, the going rate for electricity is around 15 cents/kWh as of April 18.
Last August, rates in Alberta reached record highs, with Edmonton RRO customers paying 32.5 cents per kilowatt hour and those in Calgary 31.9 cents per kilowatt hour.
Before the province lifted the cap on regulated rates as a part of its Affordability Action Plan, the regulated rate had been capped at 13.5 cents/kWh.
Alberta has a unique competitive market design for power, where electricity suppliers submit offers into the energy market known as the power pool every hour.
In March, Alberta announced new rules limiting the offer price of natural gas-generating units in hopes of quashing the issue of "economic withholding," where providers hold back supply to drive up the price.
The changes were just the start of what could be a series of significant changes to Alberta's electricity market.
Experts say the rules that govern the province's current system were designed when the bulk of Alberta's power needs came from coal and don't necessarily work for a system that is now driven by natural gas and renewables.
There are currently over 50 competitive price retailers in Alberta.
With files from The Canadian Press
CTVNews.ca Top Stories
Driver, 18, gets $3,000 ticket, 32 demerit points after speeding on Laval boulevard
A young driver received a hefty fine from Laval police after they say he was driving nearly 100 km/h over the posted speed limit.
This type of screen time has the worst effect on kids: experts
According to some experts, there is one type of screen time that is continuously excessive, and it's having a severe effect on our children.
Blaine Higgs 'furious' over sexual education presentation
New Brunswick Premier Blaine Higgs has shared his anger on social media over a presentation in at least four high schools.
Trump confronts repeated boos during raucous Libertarian convention speech
Donald Trump was booed repeatedly while addressing Saturday night’s Libertarian Party National Convention.
Grayson Murray, two-time PGA Tour winner, dead at 30
Two-time PGA Tour winner Grayson Murray died Saturday morning at age 30, one day after he withdrew from the Charles Schwab Cup Challenge at Colonial.
12 people injured after Qatar Airways plane hits turbulence on way to Dublin
Twelve people were injured when a Qatar Airways plane flying from Doha to Dublin on Sunday hit turbulence, airport authorities said.
As Canada warms, infectious disease risks spread north
Cases of Lyme disease have now increased more than 1,000 per cent in a decade as the warming climate pushes the boundaries of a range of pathogens and risk factors northward.
Why did the French Open cancel a farewell ceremony for Rafael Nadal? And why is he unseeded?
The French tennis federation put off holding a ceremony to celebrate Rafael Nadal at Roland Garros this year, because he has said this might not necessarily be his final appearance at the tournament he has won a record 14 times.
Here's what every key witness said at Donald Trump's hush money trial. Closing arguments are coming
After 22 witnesses, including a porn actor, tabloid publisher and White House insiders, testimony is over at Donald Trump’s criminal trial in New York.