CALGARY, Dec. 21 /CNW/ - The default electricity rate for Calgary will be
9.65 cents per kilowatt hour (kWh), effective January 1, 2008. Consumers who
have chosen a fixed price energy plan will not be affected by this price
As a result, on January 1, 2008 the bill for a typical Calgary household
(using 625 kWh per month) will decrease by 5.9 per cent compared with the
previous month to $93.17.
What can customers do?
Customers have options regarding their energy bill. They are:
- Choose to do nothing and receive the default rate, which may
fluctuate each month.
- Choose an energy plan that can offer control over energy costs and
fixed prices over longer terms. Information on these is available at
www.ucahelps.gov.ab.ca, or call 310-4822.
What is the default rate?
The technically correct name for the default rate is the Regulated Rate
Option (RRO). It applies when no choice is made by a consumer. The owner of
the local distribution system is required by legislation to provide the RRO to
eligible customers (residential and small commercial customers who consume
less than 250,000 kWh of electricity each year) in their service area.
ENMAX Power is the local distribution company in Calgary and fully supports
the competitive market for electricity and consumers' rights to choose their
own energy plan. Anyone who has not chosen to enter into an energy plan with a
retail supplier receives the RRO by default.
The default rate is calculated each month from prices in the wholesale
electricity market using a process approved by the Alberta Electric Utilities
Board. Forty percent of the rate comes from purchases made from sellers into
the wholesale electricity market of supply contracts for the month of January,
and the remainder comes from longer-term purchases made at market prices.
As of July 1, 2007 this default rate reflects a higher percentage of
shorter-term market prices in accordance with provincial government
regulations introduced in 2006. This could potentially cause the default rate
to fluctuate more than it has in the past. Prices change with the energy
market, depending on changing weather, seasonal consumption demands and fuel
costs such as natural gas prices. A new price for the default rate is set each
month that reflects current market price conditions.
This change in regulation increases the importance of consumers examining
their own energy cost control choices.
ENMAX Power Corporation, a subsidiary of ENMAX Corporation, and its
predecessors have provided Albertans with safe and reliable electricity for
more than 100 years. One of the most reliable urban utilities in Canada,
ENMAX Power owns, operates and maintains the distribution and much of the
transmission network in and around Calgary. Most of ENMAX Power's activities
are regulated by the Alberta Energy and Utilities Board. The non-regulated
subsidiaries managed by ENMAX Power provide engineering, procurement,
construction and maintenance for the electrical servicing of residential and
commercial developments and LRT (light rail transit) systems as well as fiber
optic networks for high speed data and internet communications. For more
information, visit our website at enmaxpower.com.
For further information:
For further information: Peter Hunt, ENMAX Power, (403) 689-6150