The Rising Cost of Electricity in Alberta: How to Keep it Down
After years of relatively low prices, the cost of gas has jumped to almost record-high levels, causing sticker shock for many homeowners in Alberta. As a result, many residents received a doubled or even tripled energy bill at the beginning of 2022, which was a real shock for them.
According to Sophie Simmons, the director of Anova Energy, a leading energy cost management and brokerage company in Canada, the price has shot up by more than 150% in the past 18 months, which has never happened in the market before. As the problems continue to mount, the authorities seek new strategies to keep utility prices low for customers. This blog will take a look at three solutions.
Switch to a fixed energy rate
Customers in Alberta can choose their electricity service provider and select between a fixed or variable regulated rate option (RRO). In 2022, homeowners paying a floating rate for their heating and electricity instead of signing a fixed contract are seeing significant increases in costs. Regulated rate option prices remained at previous highs in August. So, experts say the best way for consumers to protect themselves is by signing up to a contract. They also don’t anticipate prices to drop significantly in the near future.
The Government’s $50-a-month rebate on electricity bills
The UCP government acknowledges the issues Albertans are dealing with in regard to rising costs and energy inflation. So, they will provide $50-per-month rebates directly on bills until the end of the year, a total of $2.3 billion in compensation.
Earlier this year, the province announced that more than 1.9 million eligible Alberta households and small businesses would receive monthly credits of $50 on their July, August, and September electricity bills. However, in order to help people cope with the high cost of living, they have now decided to extend this period an additional three months so it will last through December.
Decarbonizing electricity system
A more sustainable way to manage the increased electricity costs that come with hikes in gas prices is to incorporate renewable energy technologies into the grid. The Alberta government aims to keep the energy-only market competitive; therefore, they’ve committed $13.9 billion in new generation projects since 2019, with the majority of them being renewable power.
We have covered some of the policies in detail here:
The Canada Greener Homes Initiative is a government-sponsored program that provides funding to homeowners for energy-efficiency retrofits, including solar panel installations.
The Clean Energy Improvement Program can pay for up to 100% of the energy efficiency improvement expenses.
If you are considering switching to green and sustainable power, our experienced solar panel installation experts can provide you with a free solar panel assessment.