Province introduces measures to limit electricity charges for Albertans

Province to introduce electricity cap The Alberta government announced Tuesday that it will introduce a price cap on electricity in the New Year.

The Alberta government announced measures Tuesday to insulate Albertans from a potential rise in electricity prices.

The province said in June, 2017, a rate cap would be implemented to ensure Albertans would pay no more than 6.8 cents per kilowatt hour for electricity over four years.

In the past, regulated electricity rates have been volatile. Back in April, 2011, the price of electricity increased as much as 65 percent in a month (4.66 cents per kilowatt hour). More than three years later, in June, 2014, the cost dropped by about 42 percent in a month.

“What this does is this is part of a plan that will move Alberta back towards the mainstream,” Premier Rachel Notley said. “It will provide greater stability in prices for consumers.”

Between June 2017 and June 2021, when the rate cap is in effect, consumers on the Regulated Rate Option will pay the lower of the market rate or the government’s cap rate.

Officials said if the supply costs exceed the government’s set price, the province would be willing to use revenue from the carbon levy to make up the difference.

The cap will be automatically applied to bills for consumers on the regulated rate, officials said Albertans could also choose a private supplier they believe works for them.

Now, the province said the Energy Minister Margaret McCuaig-Boyd will consult with distributors, retailers, and consumers in starting in December.

With files from Shanelle Kaul