What are the advantages of buying energy from energy retailers as opposed to traditional utilities?

Frequently Asked Questions

What are the advantages of buying energy from energy retailers as opposed to traditional utilities?

Buying energy from energy retailers, especially in deregulated markets like Alberta, offers several advantages compared to purchasing from traditional utilities. One of the key benefits is consumer choice. Energy retailers often provide a variety of rate plans, contract lengths, and renewable energy options, allowing consumers to choose a plan that best suits their needs.

Another advantage is the potential for competitive pricing. The presence of multiple energy retailers in the market fosters competition, which can drive down prices or at least offer consumers more varied pricing options.

Additionally, energy retailers may offer innovative products and services such as smart home integration, energy management tools, and customer loyalty programs. These added features can enhance consumer experience and provide value beyond basic energy supply.

In essence, energy retailers give consumers more control over their energy choices, potentially offering better prices and personalized services compared to traditional utilities that operate on a one-size-fits-all model.

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A rolling blackout, also known as rotational load shedding or planned power outages, is an emergency procedure used by power companies to manage the supply of electricity across the grid when the demand exceeds the supply. This can occur during extreme weather conditions, such as heatwaves or severe cold snaps, when consumers use more electricity for cooling or heating than usual. It can also happen if there is a power generation shortfall due to unexpected power station shutdowns or a deficit in fuel supply

Alberta primarily generates electricity from natural gas and coal, with a growing contribution from renewable sources like wind and solar. Natural gas-fired power plants play a significant role in Alberta’s electricity generation due to the province’s abundant natural gas resources. Efforts are being made to transition to cleaner energy sources to reduce the environmental impact of power generation.

In Alberta, Canada, the role of energy retailers is particularly distinct due to the province’s deregulated energy market. Energy retailers in Alberta act as intermediaries between energy producers and consumers, both residential and commercial. They purchase electricity and natural gas at wholesale rates and then sell it to consumers at retail prices.

Alberta’s deregulated market allows consumers to choose from a variety of energy retailers, rather than being limited to a single, regulated utility. This competition can result in more favorable rates, flexible contract terms, and specialized offerings such as green energy options. Some retailers offer fixed-rate plans that provide price stability, while others offer floating rates that fluctate with market conditions.

In this environment, energy retailers do not own the infrastructure for generating or distributing electricity or gas; those aspects are managed by separate entities. However, retailers handle customer service, billing, and often provide additional services like energy usage monitoring tools.

By participating in Alberta’s deregulated market, energy retailers play a key role in providing consumers with more choices and potentially better prices. They also have the opportunity to differentiate themselves through sustainability initiatives, such as offering electricity from renewable sources, thereby promoting greener energy solutions within the province.

Large home appliances use the most electricity in a home, these include the furnace, hot water tank, air conditioner, oven, clothes dryer, dishwasher, and washing machine. Hot tubs and space heaters can also consume a lot of energy. Visit our blog to learn more about how to lower your household energy use.

A brownout is a temporary reduction in voltage or power supply that can cause lights to dim and electrical appliances to malfunction. Brownouts are usually caused by high demand for electricity, and power companies may implement them to avoid a blackout or overload on the power grid. While brownouts are less severe than blackouts, they can still cause damage to electrical equipment, so it’s important to turn off appliances and devices during a brownout to prevent any damage.

Peace Power offers a variable rate for electricity, and both variable and fixed rates for natural gas. Fixed rates allow you to lock in for the length of the term (our term is 1 year), and our variable-rate plan allows you to take advantage when the prices are low. Note that the variable rate also rises so you may need to keep track of it from month to month to decide which plan is best for you.

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