Premier Rachel Notley announced an electricity rate cap of 6.8 cents per kilowatt hour that will be implemented in June of 2017.
“Our government inherited a volatile electricity system that doesn’t look out for consumers or work for investors,” said Notley in a press release.
“This rate ceiling, along with other electricity system reforms…will ensure stable and affordable electricity prices going forward,” she said.
The announcement was made in Edmonton with Energy Minister Margaret McCuaig-Boyd on Nov. 22.
The rate ceiling will be in effect from June 2017 to June 2021. Consumers on a long-term contract will pay no more than 6.8 cents per kilowatt hour.
Albertans on a regulated rate option will be charged the lower of either the market rate or the capped rate.
Once the ceiling comes into effect I the spring, consumers will still have the option to enroll in offers from any private suppliers that suits their needs.
Notley said that the current oversupply and low electrical prices won’t last which is why her government has decided to implement the cap.
“Alberta’s economy is stabilizing and this government won’t put Alberta families, jobs or the economic gains we are beginning to see at risk in a volatile electricity market,” she said.
Wildrose Shadow Electricity & Renewables Minister Don MacIntyre responded with a release claiming that it is government policies that will contribute to that volatility in the electricity market.
“Their shutdown of coal, tax increases on power companies and ongoing legal battles have caused investor confidence in our province to plummet and will lead to further volatility,” he said.
The current regulated rates in Alberta is set at about 3.8 cents per kilowatt hour.
“the NDP government has admitted their policy changes mean Albertans should expect nearly a doubling of current electricity costs,” said MacIntyre.
