Alberta government rolls ahead with electricity plans: Rate of Last Resort
Global News
The province says the Rate of Last Resort help consumers better understand energy options and is part of an ongoing consumer awareness initiative.
New legislation is set to take effect January that the Alberta government says will protect power consumers from big price swings.
The Regulated Rate Option — now renamed the Rate of Last Resort — is meant to encourage Albertans to sign up for a competitive contract.
The province says this will help consumers better understand energy options and is part of an ongoing consumer awareness initiative.
“Utility bills can make or break a tight budget when every nickel and dime counts,” Minister of Nathan Neudorf said in a statement.”Our government is giving Albertans the tools needed to help save more their hard-earned dollars and make their monthly costs more predictable, while protecting the most vulnerable from sudden price spikes.”
The Rate of Last Resort will be set every two years and can only be changed by a maximum of 10 per cent each term.
The Utilities Consumer Advocate, under the Ministry of Affordability and Utilities, will need to check in with customers every three months to confirm whether they want to stick with the default or sign up for a contract.
“The team at the Utilities Consumer Advocate is available to help consumers understand Alberta’s retail energy market, including these changes, and help them identify options that will work best for their household, farm, or small business,” Utilities Consumer Advocate member Chris Hunt said in a statement.
Albertans have three options when purchasing their electricity and natural gas utilities: the default power rate, a competitive contract for a variable (floating) rate, or a competitive contract for a fixed rate.
