Alberta’s New Electricity Market Rules Result in Lower Rates Over First Two Months of Implementation
September 9, 2024
Alberta’s government is modernizing the entire electricity system, providing long-term solutions to lower utility bills and protect Alberta’s ratepayers. This work is already well underway, with measures to prevent power price spikes coming into effect on July 1, and more to come in the new year. The government’s initial work on modernization means that Albertans have already seen significant decreases of almost 60 per cent on their August electricity bills.
“Our government promised to lower Albertans’ utility bills, and I am proud to see our efforts yield results. The numbers speak for themselves and prove that our government’s new policies are working, with much more still yet to come,” commented Nathan Neudorf, Minister of Affordability and Utilities
Since coming into effect on July 1, the Market Power Mitigation Regulation is already keeping more money in Albertans’ pockets. This regulation prevents power price spikes for Albertans’ on variable rate contracts. Within weeks of being implemented, the regulation protected Albertans on variable rate contracts from price spikes when a summer heat wave drove up demand, at a time when access to power was critical. The Market Power Mitigation Regulation is working, and has decreased power prices by nearly 60 percent year over year for August. Independent reports have estimated this regulation will save Albertans more than $8 billion over the next decade.
Figure 1 – Price comparison of the default rate of electricity in Alberta: August 2023 vs August 2024
Table 1 – Average monthly price of the default electricity rates across Alberta, 2023 vs 2024
| 2023 | 2024 | |
| July | 27.50 c/kWh | 11.86 c/kWh |
| August | 32.27 c/kWh | 13.19 c/kWh |
*Average monthly price for the four major default rate providers (ENMAX, EPCOR, FortisAlberta, ATCO Electric)
Source: Alberta Utilities Commission
Additional measures to lower utility bills will come into effect in 2025, such as the Utilities Affordability Statutes Amendment Act (UASAA), regulatory changes to the default electricity rate, and changes to how transmission costs are allocated. The UASAA was passed in April, renaming the default electricity rate to the Rate of Last Resort and will lower and stabilize local access fees. This legislation alone is estimated to save the average family on the default electricity rate $937 per year on their power bills.
“Cost uncertainty and unpredictable price spikes in electricity bills have been significant challenges for Albertans in recent years. However, in recent months retail electricity prices have been decreasing and there is more price stability for consumers. Consumers can learn more about their retail energy options from ucahelps.ca,” commented Chris Hunt, Utilities Consumer Advocate
Alberta’s government is creating pathways to prosperity by lowering the cost of electricity, ensuring Albertans keep more of their hard-earned dollars in their bank accounts. The Utilities Consumer Advocate (UCA) continues to help Albertans better understand and navigate the utility market, and their advocacy has led to more than $3.2 billion in savings for Albertans over the past 20 years. Albertans who are looking for assistance with their utility bills or are experiencing a dispute with their retail provider should contact the UCA.
