CALGARY, June 30 /CNW/ - ENMAX Power is advising that the default
electricity rate for Calgary will be 8.705 cents per kilowatt hour (kWh),
effective July 1, 2009. This is an increase of 20.3 per cent from last month's
rate of 7.23 cents per kilowatt hour. Consumers who have selected a retailer
and entered into a fixed price contract will not be affected by this price
What can customers do?
Customers have options regarding their energy bill. They are:
- Choose to do nothing and receive the regulated default rate, which
fluctuates each month.
- Select a retailer and choose an energy plan that offers fixed prices
over longer terms. Information on these is available from the
Alberta Government's Utilities Consumer Advocate at
www.ucahelps.gov.ab.ca, or call 310-4822. The Utilities Consumer
Advocate's website provides a list of energy retailers and the terms
of their various offers which assists consumers in comparing the
choices that are available to them.
What is the default rate?
The technically correct name for the default rate is the Regulated Rate
Option (RRO). It applies when consumers have not selected a retailer and
entered into an energy plan for electricity supply. 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 Utilities
Commission. Eighty per cent of the rate comes from purchases made from sellers
into the wholesale electricity market of supply contracts for the month of
July, and the remainder comes from longer-term purchases made at market
As of July 1, 2009 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.
The most recent annual default rate pricing shift in July 2009, further
increases the importance of consumers examining their own energy cost 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, which are activities regulated by
the Alberta Utilities Commission. Non-regulated subsidiaries of ENMAX
Corporation provide engineering, procurement, and construction services as
well as maintenance for electrical servicing of residential and commercial
developments and light rail transit systems. Visit our website at
For further information:
For further information: Media only contact: Doris B. Kaufmann, Sr.
Media Relations advisor, C. (403) 689-6150 (media line), E.