Locking in utility rates

[canuck2a]

Anybody already lock in on natural gas or power rates? Wondering if it’s a good idea or bad idea, considering the carbon tax will raise rates.

[JustBen]

For what it’s worth, they always are telling us that rates are going up.

[Dick284]

The consumption rate is likely the smallest part of your bill.

For a power bill, the price per KWh, pales when you have to pay for a franchise tax, transmission and distribution costs, and a carbon levy that gets gst added to that. And a bunch of other add on’s.

It’s worse than a alacart restaurant.

[CNP]

I know I have seen savings by opting for "Regulated" (floating) rates vs a locked in contract. I have never signed a contract since deregulation in 2001 (or whenever it happened).

Coincidentally today, I as most all Albertans, received in the mail a brochure from the govt explaining that the govt would cover for electricity rates in excess of 6.8 cents kw/h. The average price since deregulation has been in excess of 7 cents kw/h.........................I'm sticking with regulated rates. I hated it when I had the door to door guys trying to convince me to sign a contract with them. No thanks.

[brslk]

Originally Posted by Dick284

The consumption rate is likely the smallest part of your bill.

For a power bill, the price per KWh, pales when you have to pay for a franchise tax, transmission and distribution costs, and a carbon levy that gets gst added to that. And a bunch of other add on’s.

It’s worse than a alacart restaurant.

Exactly! The difference in out power and gas bills in winter and summer with a heated garage and hot tub is less than $20 a month.

[fishtank]

the administrative fees and misc taxes and charge are the bulk of the bill...

[Norwest Alta]

I averaged my kw/h rate over a year and a it wouldn’t of made a notable difference if I locked in my rate.

[Rifle]

The average regulated variable rate has always been lower than any of the locked in rates that they've offered. Don't do it. Their job is to make money. The only reason they would offer that locked in rate is because they have also done the math and determined that they'll make more money that way.

[badger]

On average the utility makes money on locked in rates, why else would they offer the deal? So if you can beat the odds and predict the market pricing better than them, go for it.

[Big Grey Wolf]

Our rural electification farm coop buys power in bulk locked in then get best rate for all us members. Majority of bill is for distribution, etc etc. Last bill for power was $49 then payed total of $150 to electrical leaches that we payed to build power lines many years ago thanks to Kleiniken deregulation.

[oldgutpile]

who was it about five years back, that 'Made a bad buy from the grid" and passed on all the costs to the consumers? Cant remember if it was epcor or direct energy, but I recall my business was on the default system at the time. My power bill that month jumped by 40% at the business. for my shop, that means about 3000.00 extra to fork over. I have never been without a contract again! Energy companies dont give a rat's behind about your personal finances, and have zero accountability for their mistakes. They mess up, you pay!