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Consumer Info

Is Enmax’s Choose Free really Free?

· · Leave a Comment Community Building, Consumer Info, Electricity, Interesting

Is Enmax’s Choose Free electricity promotion really free?

You may have heard about this promotion happening right now and thought to yourself, “Hey, that sounds like a great deal.”  Before you jump in here are some things to consider

Here is the skinny on Enmax Free Power giveaway.

A. Conditions:

1. You must sign up for both Electricity (at 7.79 ¢/ kWh) and Gas ($5.99 /GJ or Floating + $0.99 /GJ) for 5 Years.

2. Administration Fees are $7.10 per month for Electricity and $7.10 per month for Gas.

3. The customer will receive electricity at 0 ¢ /kWh up to a maximum of $750 for one year: applied just to the energy portion of the bill. This applies to either the first or third year of a 5 year contract. (The $750 is not what the customer would receive, but rather this is a cap on what the offer is valued at. This is equivalent to a customer using about 802 kWh per month – to achieve the maximum benefit). Once the $750 credit limit has been reached the customer will continue paying the 7.79 ¢/kWh rate.

4. If the customer cancels the contract the penalty is $95 per Electricity Site and $95 per Gas Site calculated for the remaining term of the 5 year contract. (A double dip penalty – will be expensive!)

B. Analysis:

1. One year free electricity comes at a cost.  You must remain an electricity and gas customer of Enmax for 5 years and should

2. The administration charges per month are not $7.10 but really $14.20 (as the admin fee is applied to both Electricity + Gas).

3. Remember you must buy gas and possibly pay $5.99 /GJ. Over the last couple of years (including the spike in price during February of 2014) the average Regulated Rate for Gas which follows the market price was $3.08 /GJ. Using history for comparative purposes, then consumers signing up for gas at $5.99 would be paying almost 100% more for gas compared to what they would have paid if they were on the Regulated Rate.The average consumer using 8 GJ per month would be paying over $275 a year more for gas (which is $1,375 over the 5 year term in premium rates) compared to what they would be paying if they were on the regulated rate.

4. Hidden in the “Fine Print” take note that ENMAX has now implemented a cancellation fee which it never had before. If you want to try or need to get out of this contract it will be expensive. If you cancel at the end of the first year of free power the penalty cost would be $760. On an annual basis the exit fee is not $95 but rather $95 X 2 (for both commodities) = $190 per year remaining on your contract.

 

How does this compare to Park Power’s current Residential Value Rate?

1. On a 3 year contract you would pay 7.75¢/kWh for your energy and $6.50 for your admin fee. Lower than Enmax’s $7.10

2. The 5% interest you earn on your $200 deposit brings your monthly admin fee down to about $5.40.

3. If you want or need to get out of your contract with Park Power you may do so free of charge.  We only ask that you give us 10 days notice of the cancellation.  After that you receive your $200 deposit (that has been earning you a 5% annual return) back.

4. We are offering you a great rate on electricity with superior customer service based right here in Alberta, not in India like Enmax.  We also won’t charge you any exit fees should you have to cancel your service before your contract is up.

 

Don’t believe the hype it makes more sense to choose a lower rate of electricity from Park Power and stay on the Regulated Rate for natural gas.

Shop Local and Power Our Community.

Alberta Price Alert for Electricity in May

· · Leave a Comment Consumer Info, Electricity, Uncategorized

AESOAlberta Price Alert for Electricity in May.                                                                                                                                                   RRO Prices for Electricity are on target to increase 32% for May 2014.

This is a message aimed mainly at customers on the RRO (Regulated Rate Option) but is good information for all energy consumers.

The Regulated Rate Option (RRO) is the default rate for electricity. The RRO fluctuates month to month because it is based on short term market prices, just like the regulated rate for natural gas. The RRO provider is the default provider of electricity for a consumer who has not yet signed up with a competitive retailer like Park Power.

RRO prices are set prior to the billing month.  May’s rates will be set soon based on current market prices and are trending towards a range of 8.9-11.4 ¢/kWh rate for May 1st.

If like me you live in the Edmonton Region then your RRO provider is EPCOR.  If you pay your power bill to EPCOR then you have been lucky lately paying just under 7.00 ¢/kWh for the past two months but you can expect to see a drastic jump in your bill soon. The forecasted rate increase for May is based on current and trending market data posted by the AESO.

By signing up for  the current Park Power Residential Value Rate  of 7.75 ¢/kWh you could avoid the 32% jump in price and you will end up paying a rate that beats the 3 year average for the Edmonton Region RRO of 9.06¢/kWh.

Shop Local and Power Our Community.

 

Compare Electricity and Natural Gas Utility Options

· · Leave a Comment Consumer Info, Electricity, Interesting

How should you compare electricity and natural gas utility options for your home? Many Albertans are uninformed about the options available to them when choosing utility services (power and natural gas) for their home.  They may be unaware of how deregulation has affected their choice and how sometimes the regulated option may not be the best one for them.

Since 2001 for Electricity and 2004 for Natural Gas Alberta residents have had the ability to choose to receive their power and gas from a retailer regulated by the Alberta Utilities Commission (AUC) or from a competitive retailer like Park Power.  The AUC reviews and approves the rates charged by the regulated providers, in the Edmonton region these are EPCOR for electricity and Direct Energy Regulated Services for natural gas.  If a customer chooses a regulated retailer, the rate the customer pays will change every month based on the market price for either electricity or natural gas.  If the customer chooses a competitive retailer they will have the option of choosing to pay the floating (market) rate or paying a fixed rate for a prescribed term through a contract.

One of the most important things to understand when considering a regulated or competitive retailer is that your choice or retailer does not affect the delivery of electricity or natural gas to your home, only the price you pay for it.  The delivery to your home will still be made by ATCO Gas or AltaGas for your natural gas service and EPCOR, Enmax, ATCO Electric or FortisAlberta for your electricity service.

Here is a comparison of our current rate offerings to your options from the big retailers operating in the Edmonton region.

Park Power’s current electricity Discount Fixed Rate  – 6.3¢/kWh Guaranteed until Dec. 31, 2020 and free to cancel with only 10 days notice.

Park Power’s current electricity Variable Rate   – May 2017 Rate 3.71¢/kWh  (6 Month Average 3.70¢/kWh). Free to cancel or switch rates at anytime.

Park Power’s current Discount Natural Gas Rate of Market Price + $0.75/GJ. Guaranteed until Dec. 31, 2019 and free to cancel with only 10 days notice

A Sherwood Park, AB company independently owned and operated serving customers all over Alberta.

 

Direct Energy competitive electricity 3 year fixed rate   6.99¢/kWh Cancel for free if you give 30 days notice.

Direct Energy current floating Natural Gas Rate of Market Price + $2.00/GJ

North American head office in Houston, TX and a subsidiary of UK bases Centrica PLC.

 

Enmax 5 year fixed electricity rate – 6.59¢/kWh. Cancel for free if you give 30 days notice.

Enmax current floating Natural Gas Rate of Market Price + $0.99/GJ

Headquartered in Calgary, AB aiming to deliver long term value to its largest shareholder, the City of Calgary.

 

Just Energy 5 year fixed electricity rate             6.59¢/kWh. Pay a $75/year exit fee should you cancel before the 5 year term is up.

Just Energy only offers a fixed Natural Gas Rate of $4.69/GJ

Headquartered in Mississauga, ON

 

To me it seems like an easy decision to shop local and sign up with Park Power but the choice is up to you.

Shop Local Save Money

 

Choosing Electricity Rates in Alberta – Floating or Fixed?

· · Leave a Comment Consumer Info, Electricity

When choosing electricity rates in Alberta, should you choose floating or fixed?

In Alberta, we have a deregulated electricity market and you can choose who you buy your electricity from.  You can buy from a Competitive Energy Retailer like Park Power either at a fixed price for a certain term or at a floating rate that will follow the market price. If you don’t choose to buy from a competitive retailer you will be put on the Regulated Rate Option (RRO).  The Alberta Utilities Commission (AUC) regulates Alberta’s investor-owned and municipally-owned utilities to ensure that customers who have not signed up with a competitive retailer still receive electricity at a just and reasonable rate.  This rate changes each month and is set at the beginning of the month.

If you choose to go with Park Power, a competitive electricity retailer, and you want a rate that follows the market price, then you can choose a Floating Rate Plan. Typically, competitive retailers set the rate at the end of the month, dependant opon the average market prices for that month. Over the long term the average floating rate has proven to be lower than fixed contract prices and the RRO prices.

Alternatively, if  you are risk averse and would like to protect yourself from spikes in the price of electricity on a month to month basis then you can choose to go on a Fixed Rate Plan. The Fixed Rate (or contracted rate) is an electricity rate sold to you by the retailer for a specified  term. Currently Park Power is offering fixed rates on 3 year terms and you can cancel for free anytime with only 10 days notice.

What is important for consumers to understand is that they have a choice when purchasing their electricity supply and that who they choose as their retailer does not affect how the power is delivered to their home or business.  If you are looking to reduce your monthly expenses and save money on your electricity bill then consider shopping local and powering our community.