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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.