With Autumn fast approaching and the upcoming January 1 Carbon Tax not so far away, many Albertans are asking themselves what this new increase is going to look like. According to the Utilities Consumer Advocate, many Albertans are on either a regulated rate or a variable (floating) rate with their current supplier. This simply means they are paying the current market price for electricity.
For the last 12 months, the market price in Alberta has been extremely low due to oversupply and lack of demand due to our economic slowdown. However, there are two factors that will cause an increase in price in the coming months:
- There are several generation plants that will be shutting down for maintenance this fall. Less supply means higher demand and as a result, higher prices.
- The Carbon Tax on CO2 emitting generation means most of the current generation will see an increase in their fuel costs (possibly as much as 50% for natural gas). With higher costs across the board, generators will be forced to increase the price of electricity to the market.
For Albertans on a regulated or floating rate, this increase simply means higher prices and more expensive bills. So when is the last time your energy company advised you to move to a different rate to protect your wallet? Now is the time to lock into a 3 year or 5 year plan to ensure that you are insulated against all possible upcoming spikes.
But what if the predictions are wrong? What happens if January rolls around and the price hasn’t changed? Whichever company you chose to get a fixed rate from, PLEASE, PLEASE ensure they do not have a cancelation fee (Get Energy of course has none!) Then, if there is no drastic increase in the market price, simply switch back to the floating rate.
We want to educate Albertans on how energy works so they can make informed decisions about their energy needs.
Questions about the upcoming Carbon Tax?
Not sure if your rate protects you from the Carbon Tax?
On a floating type rate?
Contact me directly at 1-780-665-4771 ext 100 or send me an email at Malcolm@getenergy.ca.
Whatever you do, don’t wait until it’s too late to grab the lowest fixed rate in Alberta’s deregulated history.