CALGARY, Oct. 30 /CNW/ - The default electricity rate for Calgary will be
10.81 cents per kilowatt hour (kWh), effective November 1, 2008. This is an
increase of 6.9 per cent from last month's rate of 10.11 cents per kilowatt
hour. Consumers who have selected a retailer and entered into a fixed price
contract will not be affected by this price change.
What can customers do?
Customers have options regarding their energy bill. They are:
- Choose to do nothing and receive the default rate, which fluctuates
- Select a retailer and choose an energy plan that offers control over
energy costs and 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 a fixed price contract. 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. Sixty per cent of the rate comes from purchases made from sellers
into the wholesale electricity market of supply contracts for the month of
November, and the remainder comes from longer-term purchases made at market
As of July 1, 2008 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