The Government of Alberta made a call for Calgarians to save money, by better understanding their options for electricity rates that are more affordable than the province’s Rate of Last Resort.
That rate, which is the default rate for electricity consumers that don’t have a retail plan with an electricity provider, is set at just over 12 cents per kilowatt hour versus fixed retail contract rates that are currently around seven cents per kilowatt hour.
Nathan Neudorf, Minister of Affordability and Utilities, said that could save Calgarians hundreds of dollars per year—and as a result the government is launching a new ad campaign to make consumers aware of their electricity options.
Minister Neudorf said the announcement was made at Calgary’s Centre for Newcomers on Feb. 4 because newcomers to Alberta made up a large percentage of the people on the Rate of Last Resort.
“Many people who are just settling in the province haven’t yet had a chance to learn about our uniquely competitive electricity market and the options that may be available to them. For many families, the rate of last resort is just that – a last resort and far from the best option,” he said.
“This campaign helps make that clear, because when families are settling into a new place, faced with so much change, new information and expenses, they should have the peace of mind that they if they’re not getting the best rate available to them right away, they can look at their options and potentially save themselves hundreds of dollars each year.”
He said that since the introduction of the Rate of Last Resort in the province, which replaced the formerly frequently misunderstood provincial Regulated Rate Option, the number of Albertans using a non-retail plan had fallen from over 700,000 to approximately 400,000.
He said the goal was reduce the number of people on the Rate of Last Resort to between 200,000 and 400,000 annually.
Yuliia Haletska, a case manager at the Centre for Newcomers, said that because many newcomers to Calgary were starting their lives in the city from having very little, even being able to save several hundred dollars on their bills would make for a significant difference in their lives.
“We are facing clients who don’t have anything. They’ve been sleeping at the airports with kids, and shelters are not available. So basically, they’re just literally starting their life from zero. So it would make a huge difference for families,” she said.
Calgarians are being encouraged to visit the Utilities Consumer Advocate website at ucahelps.alberta.ca, to understand their electricity rate options.
