August may see record-breaking electricity bills for residents. 

On July 27, Direct Energy Regulated Services, ENMAX Energy Corporation, as well as EPCOR Energy Alberta GP Inc, all submitted their August 2023 regulated rate options (RRO) to the Alberta Utilities Commission. However, in comparing historical rates, August 2023's maybe some of the highest in the province's history.

Albertans may see their electricity bills much, much higher in August as utilities companies have submitted their variable rate options - with some saying the rates are some of the highest in the province's history. (Graphic credit to Alberta Utilities Commission)Albertans may see their electricity bills much, much higher in August as utilities companies have submitted their variable rate options - with some saying the rates are some of the highest in the province's history. (Graphic credit to Alberta Utilities Commission)

Residential customers within the Fortis Energy service region could pay upwards of 32.259 cents per kilowatt hour, compared to July's 27.82 cents. Direct Energy customers may end up paying 32.425 cents per kilowatt hour, while ENMAX consumers may be upwards of 31.858 cents.

In July, Direct Energy stated that July 2023 regulated rates, which were 51 per cent higher than the energy rate charged in June, translated to an approximate $58.94 or 20 per cent increase in the total amount of their bill.

With this coming rate hike, some estimate that customers could see more than $100 tacked onto their utility bill if they are not on the fixed rate option. 

AUC stated on its website that, RRO rates were capped at a maximum of 13.5 cents per kWh for the months of January 2023 through March 2023. 

"Any excess amounts above that ceiling that wasn’t collected from customers were included in a deferral account by the provider that will be collected from the provider’s RRO customers during the recovery period of April 2023 to December 2024. The RRO Stability Regulation stipulates that the remaining deferred amount is to be divided by the number of months remaining in the recovery period."

In its letter to the AUC, Direct Energy added that the RRO rates for January 2023, February 2023 and March 2023 were higher than 13.5 cents per kWh and the resulting revenue shortfalls were included in a deferral account, to be billed to RRO customers as part of their energy used between April 1, 2023, and December 31, 2024. ENMAX had a similar stipulation in its letter.

The Alberta NDP issued a statement with regard to the potential of utility prices increasing exponentially. Nagwan Al-Guneid, Alberta NDP Critic for Energy & Climate - Electricity, Renewables, and Utilities called on the UCP to create a temporary cap to relieve Albertans who are struggling to pay their bills.

“Power prices have more than quadrupled in the last four years... The UCP government needs to develop long-term solutions focused on creating a diversified electricity grid that is reliable, affordable, and low-emission.”

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