Electricity rates are subject to change due to multiple factors such as market conditions, energy sources, and government policies. In Canada, one region that stands out for having particularly high electricity costs is the Northwest Territories. Unlike provinces with abundant hydroelectric or nuclear resources, the Northwest Territories often rely on diesel generators for electricity, which significantly drives up costs. Diesel fuel has to be transported to remote locations, adding to the expense. The sparse population and harsh climate conditions can also contribute to elevated electricity infrastructure and maintenance costs. These cumulative factors make electricity in the Northwest Territories among the most costly in Canada. As with other regions, it’s important to consult the latest data for the most current information on electricity rates.
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.
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.
In Alberta’s energy market, consumers have the option to choose between fixed and floating power rate plans for their electricity supply. Fixed rates offer the stability of a consistent price per kilowatt-hour (kWh) for the duration of a contract, typically ranging from one to five years. This means no matter the fluctuations in the energy market, the rate you pay remains unchanged, providing predictability for budgeting purposes. On the other hand, floating rates, also known as variable rates, can fluctuate month-to-month based on the current market price of power. While this means consumers might benefit from lower rates when market prices are down, they also bear the risk of higher rates when market prices increase. This option can be advantageous for those who are willing to monitor the market trends and can potentially lead to savings when market rates are low.
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.
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.