The Alberta Government announced today, that Albertans will enjoy a four-year price freeze on electricity.
In the current electricity market, Alberta power consumers are vulnerable to sudden price spikes like we’ve seen and need to protect against in the future. While electricity prices are currently at historic lows, the current oversupply won’t last forever. [Alberta Government]
This action comes in a move to protect families, businesses and the economy from price spikes and volatility. This price freeze will come into effect June 2017, and ensures Albertans pay a cap of 6.8 cents per kilowatt hour for electricity, which is equal to the current long-term retail price.
This application is for the Regulated Rate Option (RRO), which majority of Albertans are on. Until June 2021, consumers on RRO will pay the market rate or government ceiling rate, whichever happens to be lower. RRO providers will not be allowed to bill more than 6.8 cents per kilowatt hour for electricity, and this price ceiling will automatically be applied to your bill. Important to note that the price ceiling applies just to the energy portion of you bill, and does not take into account the distribution and transmission charges.
Beginning in December 2016, the government will consult with distributors, RRO providers, retailers and consumers on how best to implement the price ceiling. More information on the consultation will be provided in the coming days. [Government of Alberta]
Further information on this announcement can be found on the Government of Alberta website.
