'Just keeps getting higher and higher': Soaring utility prices pack a larger punch

Some Edmontonians are having a powerful reaction after seeing last month's power bills.

Jeff Baker's most recent utility bill was $500 including taxes, representing more than double what he paid at the same time last year, for his 1,300 square foot townhouse.

"That's a very big jump," Baker said, adding that his previous bill was around $400.

"It just keeps getting higher and higher," he said. "Aside from our mortgage, it's the highest bill we have."

Joel MacDonald, founder of EnergyRates.ca, told CTV News that approximately two-thirds of Albertans are on a floating rate, and that those users are experiencing some of the largest cost increases.

According to MacDonald, electricity prices have fluctuated over the past year, going as low as four cents per kilowatt-hour to as high as 17 cents. This past December, the average rate in Alberta was 14 cents per kilowatt-hour.

"Anything above 6.5 cents would be considered on the higher side," he said. "This is something that we see in the Alberta marketplace. It's just been a while since we last saw it."

For Baker, the factor making this time around different is that surcharges, rate riders, and fees are making a more significant chunk of his bill.

"The majority is (administrative) charges rather than the actual energy we are using," Baker said.

In 2016, the New Democratic Party-led government capped electricity prices in a bid to stabilize prices for Albertans. The United Conservative Party scrapped the program after being elected, with Energy Minister Sonya Savage saying at the time that the move followed "overwhelming" feedback from consumers and industry stakeholders.

In Edmonton, this winter saw one of the coldest and longest deep freezes in decades. Sohaib Shahid, director of economics for the Conference Board of Canada, says that could be one factor behind the surge in utility prices.

He also pointed to geopolitical tensions between Ukraine and Russia and a lack of available supply in the energy market.

"Russia is one of the biggest producers of oil and gas in the world," Shahid said. "So if tensions between these countries lead to energy production cuts, we may see even higher prices this year."

While the prices may come as a shock to Albertans, Shahid says it's not simply a trend experienced here.

"This is not an Alberta problem," he said. "This is not a Canada problem. This is a global problem. So, people around the world are experiencing higher energy bills this winter."

Shahid said there doesn't seem to be any relief for Canadians in the near future. The energy analyst said that as utility prices increase, ripple effects on consumer spending could cause even higher inflation.

"Higher energy prices have a cascading effect on all sectors of the economy," Shahid explained, adding that businesses will have to find a way to factor that increased cost into their bottom line.

With no end in sight to the price increases, Baker says he has been trying to find savings anywhere he can, including changing utility retailers and trying to reduce his energy usage.

According to him, changing retailers meant lower rates but more administration fees.

"It seems no matter what you do, (prices) are going up," Baker said.