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Alberta’s Natural Gas Rebate Program

· · Leave a Comment Consumer Info, Natural Gas

The natural gas rebate in Alberta: dates and amounts

From October 2022 to March 2023, eligible Albertans will see a rebate applied directly to their natural gas bill if the conditions of the rebate are met.

When the regulated natural gas rate offered by one of three of Alberta’s regulated utility providers (which are ATCO North, ATCO South and APEX Utilities) surpasses $6.50 per gigajoule, eligible Albertans will have the difference returned to their pockets.

Rebates will cover the difference between $6.50 and the regulated rate that calendar month. For example, if the rate is $7.50/GJ, eligible consumers would get a rebate on their bill covering $1 for every gigajoule used.

The rebates will start in fall 2022 and will last throughout winter 2023. While we have already seen sharp spikes in energy bills in the last year, the colder weather of these months combined with increased demand mean that natural gas – relied on by many Albertans to heat their homes – typically sees its price spike during the colder months. Offering rebates during this period makes sense to alleviate our energy bills when they reach their peak. 

Eligibility

Since you will automatically receive the rebate if you are eligible, knowing the eligibility requirements will be important. You are considered eligible for the rebates if you meet the following criteria:

  • You are “connected to the system”.
  • You are on either a regulated plan or a competitive plan for your natural gas.
  • You use less than 2,500 gigajoules of natural gas annually.

Non-natural gas rebates are also applicable if you use alternative fuels to heat your household, small apartment building complex, or small industrial or commercial site. If you use less than the listed limit of the following alternative fuels, you should be eligible for

  • Propane: 16,334 litres per month
  • Heating oil: 10,780 litres per month
  • Kerosene: 11,068 litres per month

How will the natural gas rebate work for Albertans with a competitive retailer like Park Power?

Since the rebate will be triggered by regulated rates in Alberta, many questions started to pop up, including how this would work for households and businesses under competitive retailer plans.

Although the rebate will trigger when the highest default natural gas rate among the three default gas suppliers is above $6.50/GJ, it will be applied to all eligible consumers, including those who have a variable or fixed rate below $6.50/GJ. According to the government, this ensures that customers will not be penalized for taking measures to protect against potential future price spikes by signing contracts.

For example, if the default rate tariff rose to $7.00/GJ in December 2022, then all eligible consumers, competitive contract or on the RRO, would receive a rebate of $0.50/GJ on their bill ($7.00/GJ – $6.50/GJ = $0.50/GJ rebate). The rebate amount would be calculated as above and applied directly to the utility bill by the service provider.

Some Thoughts on Natural Gas in Alberta in 2021

· · 4 Comments Consumer Info, Natural Gas

Listening to the mainstream media talk about the energy market during the last months caused a mad rush of consumers to sign up for fixed energy prices.  Some people are in panic mode to lock into a fixed contract and get off the variable rate.  It seemed like an eerie feeling of déjà vu, almost like those consumers in the past who were out hoarding toilet paper last year for fear of running out during the early days of the Covid Pandemic. 

The local press isn’t doing customers a favor by painting a picture of natural gas shortages and skyrocketing natural gas prices.  

We are not at risk of running out of natural gas.  Understand that the media frenzy is driven by problems being faced by consumers in Europe, not Alberta. Yes, it is true, prices in Alberta are going up, but not as significantly as elsewhere in the world. 

Let’s keep things in perspective.  As always: what goes up also comes down, and consumers on the Variable Rate plan are typically the winner in the long run.  Most importantly, it should also be remembered the actual cost of gas represents only 25% of the customers’ total invoice. If the cost of gas goes up by a dollar per GJ, it will result in a 5 to 6% increase in the customer’s utility invoice.  Invoices are not going to double. A change in the usage rate for natural gas does not affect any of the distribution or government regulated charges (the bottom half of your bill).

As mentioned, the reports in the media, for the most part, are focused on Europe and other Global markets.  While the challenges facing those markets are real, they are not causing prices to spike here in Alberta.

Nevertheless – the stories will scare some consumers here in believing the sky is falling and they better lock into fixed energy rates to protect themselves.  Price protection is a good consumer strategy for utilities but it is important to understand what is feeding the frenzy.

Why has there been a surge in gas prices in other markets?     

  • There is not one single cause for the shortage, but people, companies, and countries generally have to compete with each other to buy up gas.
  • Demand is also high as the world comes out of successive lockdowns and businesses try to make up for lost time – many will need lots of gas for this.
  • Meanwhile, gas production is also lower, and the weather was less windy over the summer – meaning more gas was burned for electricity.
  • EU policy is being blamed as “poorly thought-through decisions” by Brussels officials for creating “serious imbalances” in European energy markets.
  • Gas price rises in Europe are just one sign of a broader energy crunch that is playing out around the world.

Focus on what is happening here in Alberta?     

  • We put up a ‘Sold Out’ sign on our fixed rates for Natural Gas.  
  • The sign will be flipped over in about three weeks as we enter November, and new rates will be posted.
  • Do not panic.  Here are indicative numbers.  Look at the actual numbers over the summer months. Our costs ranged from $4.092/GJ to a high of $4.678/GJ.  Based on indicative prices posted by Shell Energy, AECO prices will move into the $5/GJ range and by April fall back down to $3.47/GJ.
  • The energy portion of a consumers bill represents about 25% of the total invoice – as such, when the cost of natural gas increases, the real impact is dampened by the fact that 75% of the other charges are regulated and relatively flat.      

The media should be focused on the volatility in the electricity market, not the gas market. Another blog post of ours address the current electricity market.

In Alberta, overall most consumers, whether on Fixed or Variable Rates for natural gas should not be in for too big of a price shock this winter. Conversely, for electricity, this year’s price increases and volatility make switching to a Fixed Rate the better option.

Direct Energy Sold To NRG

· · 1 Comment Consumer Info, Electricity, Natural Gas, Uncategorized


The deal is done. Direct Energy has been sold to NRG Energy Inc, an American company, headquartered in New Jersey. The finalization of the purchase was announced on January 5, in a very low-key notice posted on the NRG Energy website. With such a quiet announcement, we wonder if most of Direct’s customers have been left in the dark about the deal. Why the secrecy?

What does this mean for you? 

If you are a Regulated Rate Option (RRO) customer buying electricity or natural gas at AUC government regulated retail prices, your account has also been sold as part of this deal.

Why does this matter? In time, more and more Alberta jobs will be leaving the province. We asked the government why they approved the sale of the Alberta government-regulated utility to an American company. Why didn’t they stop it?

Direct Energy has a long history of outsourcing. Its Customer Care call centre jobs were moved first from Alberta to the Philippines, then to Guatemala. Its billing processing jobs were relocated to Texas, and its key technical system’s people and services were outsourced to HCL of India. Additionally, Direct Energy sold off their Alberta natural gas holdings to a joint partnership including Mercuria (HQ Geneva), Can-China Global Resource Fund (in part, funded by China Exim Bank), and MIE Holdings Corporation (HQ Hong Kong). 

Now the profits on the retail sales of the energy to customers who are on the government’s regulated rates will end up being consolidated on the balance sheet of NRG. Hundreds of millions of dollars in investments and jobs have been shipped out of the province by our big utilities.

It is time for the Alberta government to explore how it can stop the erosion of the ownership of Alberta’s utility businesses. Direct is not the only utility company guilty of selling off assets and shipping jobs out of the province. ENMAX and ATCO also have laid-off workers and sold off sections of their utility business. Heartland Generation Ltd., an affiliate of American investment firm Energy Capital Partners purchased nine of ATCO’s Canadian Utilities Ltd. generation plants which were located in Alberta. The City of Calgary’s District Energy facility will be sold off to Liberty Utilities in 2021, and, as most people know, Alberta’s transmission lines are owned by Berkshire Hathaway Energy.

As we head into 2021, it is time for our political leaders to put their polarized beliefs on the back burner and for both leaders to join together in a bipartisan mindset focused on protecting Albertan jobs. We need both leaders to work together for the benefit of Albertans, and having our province’s major government-regulated rate utility retailer run by an American company does not achieve this goal. In fact, by doing nothing, our politicians are providing a direct benefit to an American corporation, not Albertans. We challenge both political leaders to take a serious look at Alberta’s problems and work together to protect jobs.

Dear Premier Kenney and Ms. Notley, promote local businesses and don’t fear the global utilities’ corporate muscle. Jobs and businesses do not have to be sold off to American consortiums. It is time to restructure the Regulated Rate Option (RRO) policies and help educate consumers about their choices. Promote “buy local.”

A simple solution might be to make it clear to the big utilities that if they are going to profit on the sale of energy to consumers on the government’s regulated rate, then at a minimum, the utility must operate in the province and bring the jobs that they exported back.  

A Local Choice

As the COVID-19 pandemic continues to cause business closures across the province, a push for Albertans to shop locally for their goods and services has grown and has never been more critical.

Choosing a local independent business for your shopping, dining, and other needs have many benefits, including strengthening your local economies, creating jobs and opportunities, giving back to your community, and more.

When you hear the words “shop local,” what comes to mind? We would guess that the majority of our readers would immediately think about farmers’ markets, independent restaurants, or even boutique clothing stores.

Did anyone think “Utilities Provider”?

There isn’t anything inherently exciting about purchasing electricity, natural gas, and/or internet. Nevertheless, you still have a choice of who you purchase it from and within those choices are locally-owned and operated energy retailers.

The push for shopping locally should not end after the holiday season. As we enter 2021, local businesses will need your help more than ever, but this year Alberta’s market will also see the introduction of another American-run energy retailer. 

Alberta’s competitive market can support well-paying jobs and offer customers lower energy prices.

Are there options for consumers? Absolutely! Consumers have a choice: in fact, there are over 23 locally-owned and operated utility providers like Park Power in the UTILITYnet network alone. Both Park Power’s variable and fixed retail electricity prices are below the government-sponsored Regulated Rate Option (RRO). 

If you are a business or resident currently enrolled on the Regulated Rate Option (RRO) provided by Direct Energy, you will pay 7.696 cents/kWh for your electricity during January. Park Power’s floating variable rate is sitting at 5.4 ¢/kWh and our fixed electricity rates start at 6.79 cents/kWh. 

Compare and save. As outlined in the chart below, ENMAX is charging 7.981 ¢/kWh in January, and regulated rate customers of EPCOR will see their retail prices jump from 6.8 ¢/kWh in December 2020 to 8.117 ¢/kWh this month. Additionally, in the farming community, North Parkland Power REA for example pushed their electricity rate up to 8.6 ¢/kWh. Prices charged by all regulated providers in Alberta have increased. Now is a great time to find a small local energy provider that is offering lower rates.

January 2021January 2021
Electricity RetailerCost of EnergyAdministration Fee
Direct Energy Regulated Services7.696 ¢/kWh$13.65/Month*
ENMAX Energy7.981 ¢/kWh$6.60/Month**
EPCOR Energy8.117 ¢/kWh$6.06/Month***
Park Power6.790 ¢/kWh$6.90/Month

* Calculated based on rate of $0.45500/Day according to https://www.directenergyregulatedservices.com/ as of January 6, 2021.

** Calculated based on rate of $0.2201/Day according to https://www.enmax.com/home/rro/regulated-rates as of January 6, 2021.

*** Calculated based on rate of $0.202/Day according to https://www.epcor.com/products-services/power/rates-tariffs-fees/Pages/regulated-residential-power-rates.aspx as of January 6, 2021.

Why pay more for the energy you consume from a company that has outsourced jobs when you can support a local company that employs Albertans?  

Collectively, our network now has customers in over 400 communities in Alberta. The bottom line is simple: our prices are more than competitive, and you will be surprised at the perks you will benefit from by switching over to a local and private utilities provider.

Park Power and Real Talk Ryan Jespersen

· · Community Building, Consumer Info, Electricity, Natural Gas

 

Park Power is a proud sponsor of Real Talk Ryan Jespersen.

Real Talk offers real talk on news, politics, and pop culture and can be found on Youtube, Apple Podcasts, and Spotify. 

This great show can also be heard live on X, Instagram, and TikTok.

Real Talk listeners can take advantage of special Promo Codes when they sign up for service with Park Power.

 

When signing up for electricity only with Park Power use Promo Code – REALTALK50 to save $50 off of your first electricity bill with Park Power.

 

When bundling services with Park Power (electricity, natural gas, & internet) use Promo Code – REALTALK to receive $50 off of the first bill for each service you choose. This could mean up to $150 in savings.