Alberta’s carbon pricing policy, known as the TIER system, can affect energy rates in the province. The policy adds a cost to carbon emissions from certain industries. This cost can be passed on to consumers, potentially making energy rates go up. The aim of the policy is to encourage the use of cleaner energy sources and reduce pollution. Since Alberta relies on fossil fuels for electricity, the policy may increase costs for generating electricity from sources that produce more pollution. However, the impact on energy rates depends on factors like how much of the cost gets passed on and other factors like fuel prices.
Energy rates have a significant impact on Albertans. Rising energy costs can strain household budgets, making it harder for individuals and families to afford basic necessities. Small businesses, particularly those in energy-intensive industries, may face challenges due to increased operational costs. Higher energy rates can also have broader economic implications, affecting investment decisions, job prospects, and overall cost of living. For vulnerable populations, such as low-income households and seniors, managing increased energy costs can be particularly challenging, impacting their quality of life. However, rising energy rates can also drive innovation and encourage the adoption of energy-saving technologies. Balancing affordability, sustainability, and economic growth is crucial in ensuring the well-being of Albertans in the face of changing energy rates.
Fixed rates are rates that remain constant for the term of your contract, offering predictability. Floating rates, on the other hand, can vary from month to month based on market conditions.
Your electricity charge consists of two parts:
Your electricity usage is measured by your meter. Your meter number is specific to your meter. The usage charges account for the actual amount of energy you used during the billing timeframe.
Delivery charges are 100% regulated by the government and are solely dependent on where in the province your site is located. Changing providers does not alter your delivery charges as changing providers does not change the distribution network your site is connected to. Visit our blog to learn more about what fees are included in your bill.
It is often cheaper to buy natural gas and electricity from the same supplier. At Peace Power, we offer a discount for bundling services. This is because it costs us less to provide both services to our customers. Make sure that your compare the bundled price with the cost of purchasing each service separately. View our rates for more information.
The delivery charge that you see on your bill covers the upkeep cost of the infrastructure that is used to deliver the energy to your home. The delivery charge is regulated by the Alberta Utilities Commission (AUC). For electricity, this includes power lines and transformers, and for natural gas, this includes pipelines and compressor stations. Visit our blog to learn more about what fees are included in your power bill.
The average price for electricity in the province has been higher than in previous years, with 2023 being no exception. This price hike can be attributed to several factors, including changes in supply and demand, weather patterns, and global market fluctuations.
One major factor contributing to the high cost of electricity in Alberta is the province’s reliance on natural gas as a primary energy source. As the price of natural gas increases, so too does the cost of electricity generated by gas-fired power plants. In addition, the province has experienced some extreme weather events recently, including wildfires and floods, which have disrupted power generation and transmission infrastructure, leading to higher costs.
There are also several local and federal policy factors, such as the provincial carbon tax, which has increased the cost of fossil fuel-based energy sources. This policy aims to incentivize the transition to renewable energy sources, which are generally cheaper and more sustainable in the long run.