For many Albertans opening the mail box each month can be quite shocking. The monthly power bill can fluctuate wildly from month to month. For some, it can be too much.
The provincial government is acting on the concerns of Albertans. A provincial Retail Market Review Committee (RMRC) is examining how electricity prices are determined and is charged with making recommendations to help improve the current system.
Albertans are being asked to provide feedback at www.rmrc.ca.
The four person committee will examine if a default rate is needed, and how the default rate is calculated and determine ways to mitigate price fluctuations. The committee will look at the cost of electricity and consider how charges other than energy use are determined and approved for payment by consumers.
“Every family, business, and industry in our province relies on electricity to meet their daily needs,” said committee chair Ted Pound, via a press release. “We will carefully consider each group’s concerns to ensure we are making the right recommendations.”
The price of energy affects all Albertans, some of whom say the price is higher than it need be.
“How do we stay competitive as business owners when our utility bills continue to rise? I know some people who have houses for the summer and shut everything off for the winter, but still have $50 bills each month. Looking across the country, we’re not the highest. Having said that it’s a big bite as a small business or home owner,” said Image Crafter’s owner Fred Makowecki.
During the provincial campagin MLA for Drumheller-Stettler Rick Strankman recalled energy prices being a concern for constituents and the problem lies not in the cost of the energy itself.
“There were many times during the campaign when people showed me nearly $90 bills, but the energy cost was only around $9. The transportation and administrative costs were well beyond that. The cost of electricity isn’t the problem, it’s the transportation costs that are subject to improper allocation. It’s almost like a demand charge,” said Strankman.
There is also concern costs will continue to rise, further burdening Albertans.
“With the north-south transmission line being built, I think the price of electricity will be just a bit more than what it is now,” said Makowecki.
“In the case of electricity, the development of the infrastructure is being paid by us as ratepayers. The idiosyncrasy of these Bill 50 lines is it allows the companies to bring these expenses back to the ratepayers with no option. It’s a massive overbill. There’s no sane reason, that I’ve seen, to need this power,” said Strankman.
The committee will be presenting its findings to the Government of Alberta later this year. The report was originally scheduled to be presented in early June, but an extension was granted to give Albertans more time to provide feedback.
The committee has also sought feedback from consumer groups, power generators, transmission and distribution companies, rural electrification associations, and retail companies.
An online questionnaire can be filled out at www.rmrc.ca.
“I’m really disappointed we deregulated. When you have a self-monitored utility, you really leave yourself open to problems,” said Makowecki.
“I think there should be more public scrutiny on it.”
