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EPCOR Electricity Rates 40% higher than Park Power

· · Leave a Comment Consumer Info, Electricity, Interesting, Uncategorized

EPCOR electricity rates have been 40% higher than Park Power’s and many consumers are losing out on savings that a deregulated utilities market has provided.

Over the last couple of years and particular over the last 6 months, wholesale electricity prices have fallen dramatically.  Currently prices are at a 15 year low and as we enter 2015 the trend continues, today, the average Alberta Power Pool price is running at $32 per MW which equates to just over 4 ¢/kWh retail price.

Pool Prices-1

60% of Alberta electricity consumers are not taking advantage of the benefit of the deregulated market as they remain on the government regulated Default Rate.

Even though some consumers paid as low as 3.7 cents per kWh last year, many of their next door neighbors, stuck on the government regulated Default Rate from EPCOR, paid more than 50% more for electricity.

If a consumer wants to cut save money on their monthly expenses, they should consider moving away from EPCOR, ENMAX, and Direct Energy and switching retailers to Park Power.

Over the last six months, consumers that moved away from the Regulated Default Rate and onto Park Power’s Floating Rate, have saved 40% on the cost of energy they consumed.  The consumers who like stability in their costs chose long term guaranteed fixed rates, which are still lower than the historical EPCOR Default average.

 

Month Alberta PowerPrices Average RRO/Default Rate Floating Rate Saving Money
($ / MW) (Cents / kWh) (Cents / kWh) (% Savings)
August 2014 $45 8.3 6.2 25%
September 2014 $24 8.4 3.7 56%
October 2014 $27 8.6 4.0 53%
November 2014 $38 6.7 5.3 21%
December 2014 $27 7.3 4.0 45%
January 2014 $35 7.3 4.9 33%
6 Month Avg. $32 7.8 4.7 40%

Consider the following: between August and October of 2014, the cost of energy declined (from $45 per MW to below $30) which is a 33% drop in cost of energy.  Note that EPCOR’s Default Rate price did not decrease. During the same period, the Floating Rate retail prices dropped from 6.2 cents to under 4 cents per kWh.

The same problem and trend repeated itself a couple of months later. Between November and December, the wholesale cost of energy dropped by 28% but the Government Regulated Default Rate went up.

Learn More about the advantages of getting off of the goverment regulated Default Rate or RRO from this interview on Alberta Prime Time

AB PriMe tiMe

While consumers who chose an independent retailer like Park Power are saving money, many are paying more for electricity than necessary to the large corporate utilities who are in turn outsourcing work and facing legal action.  ENMAX is in court fighting a $375 million dispute; Direct Energy shipped customer care and billing jobs to India; ENMAX moved dozens of IT jobs to India; Atco sold its IT division to a firm in India; TransAlta is in court facing electricity market manipulation.

In the news:

  • ENMAX appealed assessments totalling $375 Million. The issue is now in the courts. – More
  • Direct Energy outsources residential customer care and from Alberta to India. –  More
  • ENMAX is outsourcing dozens of jobs related to its billing and customer care operations to India – More
  • ATCO’s I-Tek IT services division sold to for $195 million and outsourced  IT services offshore – More
  • TransAlta faces hearing on electricity market manipulation – More

 

If you are still on the Utility Regulated Default Rate; ask yourself: why continue to pay more for your electricity to companies that have exported customer care, billing and IT services off-shore.  Choose #LocalPower with Park Power and take advantage of lower rates, simple billing and payment, and friendlier Alberta based customer service.

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Lower Electricity Rates Are Available in Alberta From Park Power

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Lower electricity rates are available in Alberta from Park Power.  As of January 1, 2015 we are now offering service across the province.  We are excited to be able to provide our lower rates on electricity and superior customer service across this wonderful province of Alberta.

As an energy retailer, Park Power must register to offer service in the different wires territories across the province.  The distribution of electricity is still regulated and only a few companies are given territorial rights by the province to act as Wires Service Providers.  These are the companies that actually own the distribution systems and deliver electricity to residential and commercial consumers.

Previously, we were serving customers in the wires territories of EPCOR, servicing the City of Edmonton and Fortis Alberta, servicing central and southern Alberta.  As our business grows we want to be able to provide our awesome services to more Albertans.

Now Park Power is also servicing customers in the territories of

ATCO Electric, who provides distribution service for Eastern and Northern Alberta

Enmax Power who provides distribution service for Calgary, Red Deer, Cardston, Fort Macleod, Crowsnest Pass, and Ponoka

Also the City of Lethbridge Utility Services

Our market focus will still be offering #LocalPower to residents and businesses in the Edmonton Region and we will also still be supporting positive local community charities and initiatives.  The fact of the matter is that the services we provide can be of value to great people all across the province who are dissatisfied with the big corporate utilities. If someone in Slave Lake or Ponoka would like to pay less for their electricity and enjoy the ease of paperless billing and automated payments then they should be able to.

Join the movement, Sign Up Today!

A Deregulated Electricity Market Is Rewarding Consumers

· · Leave a Comment Consumer Info, Electricity

In Alberta our electricity rates are proving that a deregulated electricity market is rewarding consumers that have chosen to get off the RRO (Regulated Rate Option) offered by the big utilities and Sign Up with an independent Energy Retailer like Park Power.

2014 prices will end up being the 3rd lowest prices paid for power since the birth of deregulation in 2001.  The Wholesale price of power for competitive retailers like Park Power has dropped 36% since last year from $80.18/MW to $50.02/MW.

Wholesales Power Prices in Alberta 2002-2014
Wholesales Power Prices in Alberta 2002-2014

How do low wholesale prices reward consumers?   Park Power customers on the Floating Rate right now with Park Power are paying 4-5¢/per kWh compared to the RRO during December that is in the 7.3¢/kWh  range.  That is close to a 30% difference in the rate paid for electricity.  Park Power has proven again, that we can outperform the big utilities and offer consumers lower energy prices.

While Park Power is passing the savings onto its consumers the big utilities are trying to cut costs by outsourcing to foreign countries.  Direct Energy has contracted their customer service with HCL in India.  ENMAX outsourced IT jobs to Tata Consulting Services in India and Atco iTek services are being provided by Wipro of India.   Will the strategy work?  Time will tell, but what it does mean if you think about it:  the utilities margins will most likely increase – jobs will be lost and consumers stuck on the RRO will most likely continue to pay more when compared to the lower prices being offered by Park Power.

Deregulation is working for consumers.  It could work for more consumers as well if they chose to get off of the government regulated RRO and sign up with an independent competitive retailer like Park Power.  When a consumer does this nothing changes to their electricity service and supply, what changes is the price they pay for it.  Why not take advantage of a retailer offering lower rates, with no exit fees and superior, Alberta based customer service.

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Park Power Newsletter Dec 2014

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Park Power Newsletter

Keeping you in the loop about your local energy retailer

Recently Park Power celebrated our one year anniversary of offering a better choice for consumers to pay their power bill to.  It has been an exciting and challenging year but thanks to you, our wonderful customers, we have continued to grow and look forward to what the future holds for Park Power and our Community Partner program.

At Park Power we hope that it feels good to support a local company when you are paying your power bill.  In case you need some more reassurance that the local choice is the better one here is a comparison of us versus the big corporate players.Our current Residential Value and Small Business rate of 7.75 cents/kWh certainly offers some savings over the larger competitors.  Park Power’s Floating rate has recently been in the 4-5 cents/kWh range offering savings for those customers willing to weather the ups and downs of the electricity market.- EPCOR’s RRO rate it fluctuates up and down and the average rate since Aug 2011 is 8.93 cents/kWh.
– Direct Energy’s 3 year rate offering is currently 8.39 cents/kWh
– Enmax’s 5 year rate offering is 8.49 cents/kWh
– Just Energy’s current 4 year rate offering is 8.69 cents/kWhSome more things to note.

ENMAX, the City of Calgary owned utility, is currently running a full page ad in Edmonton offering customers “Free Electricity” for a year.  But, as you know nothing is ever for free, explained in detail in previous Blog post.  The consumer must sign up for both gas and electricity for five years at not-so-great rates, and is stuck with high exit fees if they leave early.

ENMAX has also been in the news for a couple of reasons.  They were recently in court on the charge of $375 Million in unpaid taxes.  Also, they recently made the decision to outsource jobs to India.

Also remember that none of these retailers share their profits with local charities but Park Power does.

From our consumer surveys we learned that you wanted to learn more about Park Power’s community initiatives.  One great way to stay up to date with what we are up to and how we are involved in our community is to Like us onFacebook or follow us on Twitter andInstagram.This past month Park Power was happy to support our Community Partner, the Festival Place Cultural Arts Foundation, for their 20th annual Black & White Fundraiser.  It was a great fundraising event for the Under the Big Top youth programming as well as scholarships for local youth performing artists.As always it is great to have customers like you supporting Park Power so that we are able to share 10% of our profits with our Community Partners.

Floating Electricity Rates in Alberta Can Be Attractive

· · Leave a Comment Consumer Info, Electricity, Uncategorized

When it comes to choosing the rate to pay for your electricity in Alberta these days floating rates can be attractive.  They can be really attractive if you are a customer on the RRO (Regulated Rate Option) with EPCOR.

For October usage EPCOR customers living in the city Edmonton were paying 8.737 cents/kWh for their power.   FortisAlberta customers in the Edmonton Region were paying 8.493 cents/kWh for their power.  Park Power customers paying the Floating Rate will pay close to half that for their October usage.  Depending on when their meter gets read most customers on the Floating Rate will pay between 3 and 4 cents/kWh for their electricity usage.

Here is an example of the savings that could have been had for an average residential user of 1000 kWh/month.  For demonstration purposes let’s average out the floating rate at 4.0 cents/kWh.

RRO usage charges – 1000 kWh x $0.08493 =$84.93

Park Power charges – 1000 kWh x $0.040 = $40.00

That is a savings of close to $50 if the customer had chosen Park Power’s Floating Rate over EPCOR’s RRO rate.

So, floating rates for your power can be very attractive because the savings can be very pronounced for some months.  Although the electricity market is volatile and large price spikes have occurred in the past.  If you are willing to handle the ups and downs on your power bill you can certainly beat the RRO average price and maybe even the Fixed Rates.  The choice is up to you.

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