Alberta moves a bill to cap power bills

The Alberta government has  introduced a bill that will allow it to place a cap on regulated electricity rates for the next four years. The move to cap consumer power rates at a maximum of 6.8 cents per kilowatt-hour for four years was announced in November 2016 by Premier Rachel Notley.

The cap is intended to protect consumers from price fluctuations from June 1, 2017, to May 31, 2021, as the province moves from a deregulated to a capacity power market. The price ceiling will apply to people with a regulated rate option. If the RRO is below 6.8 cents, they will still pay the lower rate.

“We’re taking a number of steps to keep prices low,” said Energy Minister Marg McCuaig-Boyd. “But in the event that prices were to spike, the cap would automatically prevent the energy rate from going over 6.8 cents to give Albertans even more peace of mind.”  About 60 per cent of eligible Albertans or one million households use the regulated rate option in their electricity contracts. The current regulated rate option averages less than three cents per kilowatt-hour.