Current Rates Electricity in Alberta 2021

In recent months, the average monthly cost of electricity in Alberta has increased. When compared to the historic lows of two years ago, you’ve undoubtedly noticed that energy prices — and, of course, electricity bills — are significantly higher. Electricity rates were about 2.88 cents per kilowatt-hour at the time (kWh). So, what’s the deal with Alberta’s price hikes?So, what’s the deal with Alberta’s price hikes? Is there anything we can do, regardless of the cost of a kilowatt-hour, to lower our Alberta electricity bills?

What is the cost of energy in Alberta?

The Alberta electricity price limit ensured that residential and small business customers with the controlled rate choice (RRO) will not pay more than 6.8 cents per kWh until October 31, 2019. The province, however, repealed the price limit on controlled electricity prices this fall as part of Premier Jason Kenney’s new provincial budget proposal.

If you live in Edmonton, Calgary, Sherwood Park, Lloydminster, Chestermere, Airdrie, Leduc, Fort Saskatchewan, or any other city, town, or village in Alberta, and you’re on a variable-rate contract (residential or commercial), there’s a lot you can do to minimise the effect of electricity price rises.

The key reasons for Alberta’s rising electricity prices are as follows:

Prices in a recession aren’t the same as usual prices: Alberta was hit hard by the economic downturn brought on by low oil prices in 2015. The recession decreased economic activity in the province, as it did in most oil-based economies, lowering many commodity prices, including Alberta electricity rates.

For the first time in more than a decade, electricity prices fell below 4 cents in 2015. Furthermore, energy prices fell to an all-time low of 2.88 cents per kWh in 2017. At that time, many customers had made the decision to turn to floating-rate policies in order to take advantage of the low energy costs. While it seemed like a good idea during the recession, when the economy improved, so did the electricity market.

Electricity prices in Alberta hit their highest level since 2014 in 2018, and have been steadily rising since then. As a result of this pattern, it’s obvious that recession rates aren’t the same as normal prices. In other words, the savings techniques used by customers during the recession (which included floating rates) would not perform as well today as they did two years ago.

Elections, the rate limit, and energy costs are all on the horizon: Politics, for example, may have an effect on energy prices. Alberta electricity prices have changed as a result of the provincial elections in 2019. Many customers used to stick with the RRO provider before the election in order to be covered by Rachel Notley’s New Democratic Party’s (NDP) price limit of 6.8 cents.

However, after the new Premier was elected in 2019, the province’s policy for determining the best electricity alternative has changed significantly. Jason Kenney, the leader of Alberta’s United Conservative Party (UCP), has unveiled a massive proposal to repeal the province’s carbon tax, which includes budget cuts.

Not only did the Alberta carbon tax subsidise the price limit, but it also subsidised specific energy conservation projects. Despite the fact that a federally levied carbon tax went into effect in early 2020, Alberta’s government has opted to go ahead with its decision to lift the price limit on RRO prices. In other words, there’s a good chance that controlled electricity prices (RRO) in the province will rise in the coming months.

It’s difficult to forecast what Alberta electricity prices will be in a few months. Customers should negotiate more stable rates and eliminate uncertainties such as variable-rate contracts in the face of such a hazy outlook for energy prices in 2021 and 2022.

A brief look back in time: What about before the financial crisis? What was the cost of electricity per kWh in Alberta? You can need to look at historical electricity prices in order to make an informed decision about your utilities. That way, you’ll be able to see how high prices will rise after the economy has fully recovered from its downturn.

The average kilowatt-hour cost in Alberta was very unpredictable even before the 2014-2017 economic downturn. From 2003 to 2018, the average electricity cost in the province was 7.3 cents/kWh, with occasional spikes above 10 cents/kWh. Alberta’s electricity prices hit an all-time high of 15.06 cents per kWh in January 2012.

The energy transition: Alberta is rapidly transitioning from fossil fuels to renewable energy sources. Coal-fired power generation will be phased out in the province by 2030, with renewables and natural gas taking its place. Even if this is good for the climate, a shift in the power grid will also have an effect on electricity prices.

Many industry analysts, for example, point to the recent closure of two large coal power plants as one of the reasons for electricity price rises in the first months of 2019. In this situation, customers with floating-rate goods are more vulnerable to fluctuations than those with fixed-rate contracts.

Alberta’s current electricity prices

It’s difficult to predict what Alberta electricity prices will be for the remainder of 2021 and 2022. However, as previously mentioned, looking at recent power prices in the province (the average cost of energy) will help us understand how Alberta electricity prices (cost per kWh) are shifting over time.

The following tables show controlled rate choice (RRO) electricity prices in Alberta (cents/kWh) for consumers with annual consumption of up to 250,000 kWh from two of the province’s key regulated retailers. In the areas covered by EPCOR and Enmax, prices in most months of 2019 went above the 6.8 cents/kWh mark, as seen below.

2021 Electricity Regulated Rates in ¢/kWh 

RetailerEPCORENMAX
2021 average so far8.4058.219

The table does not include other charges on your bill such as transmission, distribution and other rates applicable in your service area; this information is provided at the bottom of this page.

Regulated retailer​​​​​​​​​rate in cents/kWh
 May 2021​​April 2021​March 2021​February 2021​January 2021​December 2020​November 2020​October 2020​September 2020​August 2020​July 2020June 2020​
Direct Energy Regulated Services​7.411​8.305​7.1258.2617.696​6.4825.8365.852​7.3126.319​6.547​6.007
ENMAX Energy​7.504​8.825​7.335​8.763​7.981​6.7775.758​5.938​7.167​6.2226.163​5.367
EPCOR Energy(Edmonton)​7.633​9.07​7.479​8.9558.117​6.8016.142​6.5487.684​6.6966.841​5.501
EPCOR Energy(outside Edmonton/Fortis service territory)​7.539​8.924​7.382​8.8358.026.7166.057​6.45​​7.5566.6096.755​5.428
 

 

2020 Electricity Regulated Rates in ¢/kWh 

 

RetailerEPCORENMAX
2020 average 6.806.40

2019 Electricity Regulated Rates in ¢/kWh 

RetailerEPCORENMAX
January6.8 rate cap (7.733)6.8 rate cap (7.727)
February6.8 rate cap (7.189)6.8 rate cap (7.009)
March5.9915.914
April6.8 rate cap (6.981)6.067
May6.8 rate cap (6.990)6.390
June6.8 rate cap (7.231)6.391
July6.8 rate cap (9.578)6.8 rate cap (8.434)
August6.8 rate cap (10.191)6.8 rate cap (8.805)
September6.8 rate cap (8.2)6.8 rate cap (7.590)
October6.8 rate cap (7.342)6.8 rate cap (6.736)
November6.8 rate cap (8.63)6.8 rate cap (7.399)
December8.0697.32

Note: These tables are updated every month with Alberta’s latest regulated electricity prices so you can compare Alberta electricity rates over time. Billing and shipping fees are not included in these rates.

FAQ:

Who has the best energy rates in Alberta?

Index residential prices are expected to be about 5.5 cents/kWh in July and August, according to forward pricing. In June 2020, the average cost per kWh was about 4 cents.

Who is the cheapest energy supplier 2020?

SupplierTariff
Cheapest VariableOutfox the MarketOne Variable Tariff 6.0
Cheapest FixedAvroSimple and SuperSave
Cheapest Big SixScottish PowerSuper Saver September 2020 B3

Is it cheaper to buy gas and electricity together?

This ensures that, for the first time, both you and your energy provider would profit from lower gas and electricity costs. It would be easier for you to maintain and monitor your energy account if you get both your gas and electricity from the same supplier.

Who has the cheapest electricity per kWh?

Qatar has some of the lowest electricity prices in the world due to its large crude oil and natural gas production output and the fact that it is a net energy exporter. The average household pays only 0.03 dollars per kilowatt hour in this country.

Is it cheaper to buy gas and electricity together?

This ensures that, for the first time, both you and your energy provider would profit from lower gas and electricity costs. It would be easier for you to maintain and monitor your energy account if you get both your gas and electricity from the same supplier.

Which energy supplier is best for 2020?

  • Outfox the Market. The best energy supplier for 2021 as rated by customers is Outfox the Market. …
  • Octopus Energy. …
  • Avro Energy. …
  • People’s Energy. …
  • Pure Planet. …
  • Npower. …
  • Scottish Power. …

What is the best comparison site for gas and electricity?

  • Money Supermarket.
  • My Utility Genius.
  • Runpath.
  • Simply Switch.
  • Switch Gas and Electric.
  • Quotezone.
  • Unravel It.
  • Uswitch.