Alberta Electricity Price-Rise Causes Run on Contracts

January 8, 2012 by Walter Schneider.

For Albertans: Now that rates for the RRO (Regulated Rate Option) for electric energy have gone up to $0.15 per kWh and more in Alberta, you may wish to check this out when shopping for the best-possible price for electricity: http://www.theelectricityshop.net/content/contact.asp

The following is a quote from a  article in the Calgary Herald (published in the January 4, 2012 issue of the Edmonton Journal, p. A1):

…Nick Clark of Utility Network and Partners Inc. in Calgary said the option’s default price is an expensive route for most consumers.

“I think complacency and lack of awareness among the public is the reason for most people not signing up,” Clark said. “We are adding people every day with no cost to sign up or leave, and very few people ever leave. In 2011 we were selling (one-and two-year) plans for 6.5 to 6.8 cents, and we sold out.”

Clark’s firm offers services to major industrial users as well as many small retailers and co-ops. It also has its own retail arm, Spot Power.

Utilities, such as Epcor and Enmax, “go every month to the same wholesalers and generators, and buy power for the next month. But if you are always going to the farm gate with your hat in your hand, you are going to pay a premium,” he said.

“We buy off the power pool at the actual price.”

For example, on Tuesday, generators were getting $25 per megawatthour, or 2.5 cents per kW-h. Under a floating contract, the consumer would be paying between four and five cents per kWh. Over the past 30 days, the average price paid to generators has been $50.36 per MWh….(More)

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