New year brings new Alberta taxes, electricity 'rate of last resort'

Tax changes starting in 2025 CTV Edmonton's Nicole Lampa explains the changes coming this year that will affect your finances.

EDMONTON — Alberta’s electricity “rate of last resort” starts Wednesday, replacing the province’s previous default rate for consumers who don't have a contract.

The rate is set at about 12 cents per kilowatt hour until 2027.

It's meant to shield against price spikes, as the previous option fluctuated from month to month.

Retailers must confirm with customers whether they want to sign on to a competitive rate, which can be much lower.

Albertans also start paying today a tax on vaping products to fall in line with existing federal taxes.

The governments say the tax is meant to discourage vaping, especially by young people.

Early in the new year, Alberta plans to impose a $200 registration tax on electric vehicles.

The move is meant to recoup what electric vehicle drivers don't pay in fuel taxes.

An exact start date for that tax has yet to be announced.