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Alberta's regulated rate roller-coaster: Why some electricity bills have been so high

Alberta's regulated rate roller-coaster: Why some electricity bills have been so high

CBC
Monday, November 06, 2023 02:04:04 PM UTC

Melanie Green has been stuck on a two-year roller-coaster of spiking power prices.

Like roughly a third of Alberta electricity customers, she's on the default regulated rate option (RRO), and her recent bills have been sky-high.

In September, she opened a bill with more than $260 in electricity charges for her Fort Saskatchewan, Alta., home — $100 more than what she paid for the same period last year, even though she actually used less power.

And that's on top of inflation straining her budget beyond its limit every month: weekly grocery trips for her family of four regularly cost around $350, when she used to get what she needed for $200.

She's heard the advice to get a fixed electricity contract, which would keep her monthly costs calculated on one rate for a set term.

But to lock in a lower rate, electricity retailers often require that you meet their credit standards, or they ask for a deposit upfront, up to 30 per cent of the estimated annual bill.

Green says the cost poses a barrier that she can't afford.

"We really do not have the ability to choose ... because we can't just switch," she said.

"You also have to pay the arrears on your account. So sometimes in winter, my bill might be up to, like, $700. There's no way I can pay the arrears plus the deposit on that."

Alberta's Utilities Consumer Advocate fields calls from people who need help with their utility bills, whether it's getting information on their options or mediation for a billing dispute.

Executive director Chris Hunt said rising costs have been a big concern for Albertans as the RRO rose from about 16 cents per kilowatt hour in May to 32 cents per kilowatt hour in August.

"We had basically twice the number of calls that we did this September as opposed to the previous September," he told CBC News.

"It's been very difficult for people. Those that were able to exercise their retail options and look for competitive rates and lock into a stable rate did much better weather that storm than others who either didn't, or couldn't."

Green said she doesn't believe her family is the only one in this bind.

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