CALGARY, March 27 /CNW/ - The default electricity rate for Calgary will
rise to 9.81 cents per kilowatt hour (kWh), effective April 1, 2008. Consumers
who have chosen a fixed price energy plan will not be affected by this price
As a result, the electricity bill for a typical Calgary household (using
625 kWh per month) will increase by 5.5 per cent compared with the previous
month to $96.09.
What can customers do?
Customers have options regarding their energy bill. They are:
- Choose to do nothing and receive the default rate, which fluctuates
- Choose an energy plan that offers 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 Utilities
Commission. Forty percent of the rate comes from purchases made from sellers
into the wholesale electricity market of supply contracts for the month of
April, and the remainder comes from longer-term purchases made at market
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, which are activities regulated by
the Alberta Utilities Commission. Non-regulated subsidiaries provide
engineering, procurement, construction and maintenance for electrical
servicing of residential and commercial developments and light rail transit
systems as well as fiber optic networks for high speed data and internet
communications. Visit our website at enmaxpower.com.
For further information:
For further information: ENMAX Media Line, (403) 689-6150