Alberta
Alberta NDP Opposition says Albertans need help to pay utility bills
From the Alberta NDP
NDP CALLS FOR UTILITY BILL RELIEF IN RESPONSE TO SHOCKING BILLS DURING PANDEMIC, ECONOMIC DOWNTURN
Alberta’s NDP is calling for major relief for consumers following a sudden surge in constituents coming forward with massive cost increases on their monthly electricity and overall utility bills.
The Office of the Utilities Consumer Advocate (UCA) cites a number of contributing factors to the upswing in prices in Alberta, including increased consumption while people are staying home to observe COVID-19 public health orders, increased use during the winter, increased costs for natural gas and electricity and increased transmission and distribution charges.
“There’s a compounding effect here and it’s hammering household budgets,” said NDP Leader Rachel Notley. “Many Albertans have to use more natural gas and electricity if they work from home or spend more time at home to help protect their communities from the spread of COVID. Couple that with soaring prices for natural gas and electricity and you’re seeing massive bills and no relief for families.”
In 2016, the NDP Government capped electricity prices under the Regulated Rate Option at 6.8 cents per kilowatt hour; however, Jason Kenney and the UCP removed it in late 2019. According to the UCA, average electricity prices have exceeded that previous cap in January, February and March of this year — the highest price was reported in February by EPCOR, which charged an average of 8.95 cents per kilowatt hour.
As well, natural gas prices are at highs not seen in seven years, with prices in March exceeding four cents per gigajoule — the last time prices were this high was in June 2014. For context, rates were just 1.6 cents per gigajoule in March 2020.
In response, the NDP is calling for the following four actions to be taken by the UCP immediately:
- Provide direct consumer relief to two-thirds of Albertans (those earning up to $55,000 annually as an individual or $102,500 per couple). Model the relief program after the COVID-19 Energy Assistance Program offered by the Government of Ontario, which provided customers with up to $750 in support both their electricity and natural gas bills. Consumers can apply for relief on both bills separately, providing total potential relief of $1,500.
- Reinstate the Regulated Rate Option cap for electricity at 6.8 cents per kilowatt hour.
- Reinstate the Utility Payment Deferral Program, which allowed consumers and businesses to defer payment of bills but which ended last June.
- Ban all utility shutoffs for Alberta homes until the pandemic ends and public health orders are lifted.
Notley noted that Albertans are already struggling greatly during the pandemic and economic downturn, with tens of thousands of jobs lost in the province and currently the second-highest unemployment rate in Canada. In a recent Angus Reid poll, the percentage of Canadians reporting that they are worse off than they were a year ago is highest in Alberta.
“We need action to help Albertans in this time of great need,” Notley said. “People doing the right thing and staying closer to home during this pandemic should not be penalized for doing so. We need real consumer relief from these glaring utility bills and we need it to last for the duration of the pandemic, no matter when it might end.”
Thousands of Albertans have written or come forward to the NDP Caucus with complaints and concerns about their utility bills. Calgary father Hassan Ali Nakokara lost his job early in the pandemic and has been struggling to pay bills since. In February, his monthly utility bill jumped to $850 from $450 the month prior.
“It’s impossible for me to pay that,” Nakukara said. “I’m out of work, I’m trying to support my kids while I look for work. The last thing I can do is hand over hundreds to heat and power my home. I need help and I’m desperately hoping the government will step up to help me and so many others.”
Fellow Calgarian Carolyn Nystrom said she and her husband have lived in their home since 2012 and paid between $250-300 for utilities per month. Her bill has been increasing rapidly since December – for March, the total reached $576. Nystrom said it appears the greatest increases are being seen on electricity and transmission charges.
“We are in a pandemic,” Nystrom said. “People have lost their jobs. People have spent their savings. My husband and I have both been fortunate to keep our jobs through all of this. Even though we still get a paycheque, a bill doubling in three months is absolutely unaffordable … if companies like Enmax and Direct Energy can charge whatever they want per kilowatt hour or gigajoule, what can stop them? And what can we do? We live in Canada. Being able to turn lights on is not exactly an option here. We have to pay, and companies without regulations and caps know that.”
Correspondence and calls regarding spiking utility bills have come in from all over the province.
Airdrie mother Lisa Gilling said her most recent electricity bill shows the price being charged per kilowatt hour jumped from 5 cents to 19 cents per kilowatt hour and her bill for electricity alone totaled over $400.
“A three hundred per cent increase for a product or service is drastic but when it is an essential service, like electricity, it can be catastrophic, especially for a single-income family,” Gilling said. “Do you cut back on groceries in order to have lights and hot water?”
Mickey Moore, a senior living alone in Vermillion said his bill has risen by hundreds of dollars since the beginning of the year to more than $550 in March.
“Without some kind of control on essential service, with no real competition, how can we seniors expect to keep up on our fixed incomes?” Moore said. “Does the government plan to index seniors’ incomes to the rising utility costs? When we had regulated utility oversight there was some control and fairness applied.”
Louisiana Governor Jeff Landry and New Hampshire Governor Chris Sununu of the Governors’ Coalition for Energy Security
Premier Danielle Smith has joined the Governors’ Coalition for Energy Security to further support advocacy of Alberta’s energy and environmental interests with key U.S. states.
The coalition was established in September 2024 by U.S. State governors Jeff Landry (Louisiana) and Chris Sununu (New Hampshire) with the aim of ensuring energy security, lower energy costs, increased reliability, sustainable economic development and sensible management of energy resources and the environment. With 12 U.S. states already signatories to the coalition, Alberta is the first non-U.S. state to enter into this agreement.
By expanding energy ties with the U.S. and promoting cross-border energy trade and participation, Alberta is helping to build upon its North American Energy strategy. Alberta already accounts for 56 per cent of all oil imports to the U.S. – twice as much as Mexico, Saudi Arabia and Iraq combined – which is helping to drive job creation and prosperity on both sides of the border. Natural gas also plays an important role in North America’s energy mix. Alberta is the largest producer of natural gas in Canada and remains positioned to support the U.S. in filling their domestic supply gaps.
“I am honoured to join the Governors’ Coalition for Energy Security and would like to extend my sincere thanks to governors Landry and Sununu for the invitation. Alberta plays a vital role in North American energy security, serving as the largest supplier of crude oil and natural gas to the United States. With 200 billion barrels of recoverable oil, 200 trillion cubic feet of recoverable natural gas, significant natural gas liquids and ample pore space for carbon capture, Alberta’s contribution is set to grow even further as we look to work with the Trump Administration and other U.S. partners to increase our pipeline capacity to our greatest friend and ally, the United States. We are proud to collaborate with this coalition of allied states in advancing energy security, reliability and affordability for Americans and Canadians.”
“Our mission as an organization has not changed but Alberta’s welcome arrival to our group sparked a conversation about what our core mission is, and that is ensuring energy security in all its forms. Our members all share the common goal of enhancing and protecting energy options for our people and businesses, which leads to lower energy costs, increased reliability, sustainable economic development and wise management of energy resources and the environment. I welcome Premier Smith and the insights she will bring as the leader from a fellow energy-producing province, that like my state, is under a federal system of government where national imperatives are not always aligned with state or provincial interests.”
Alberta is a global leader in emissions reduction technology and clean energy solutions. The province has captured about 14 million tonnes of carbon dioxide through carbon capture, utilization and storage technology, and has the ability to support the U.S. in developing new infrastructure and supply chains for future energy markets in the areas of hydrogen, renewables, small modular reactors and others.
Alberta is also unlocking its untapped geological potential to help meet the increasing demand for minerals – many of which are used worldwide to manufacture batteries, cell phones, energy storage cells and other products. This includes the province’s lithium sector where Alberta’s government is supporting several innovative projects to develop new ways to extract and concentrate lithium faster and with higher recovery rates that are less capital and energy intensive and have a smaller land-use footprint.
As part of this coalition, Alberta looks forward to sharing best practices with states that already have expertise in these areas.
Quick facts
- The U.S. is Alberta’s largest trading partner, with C$188 billion in bilateral trade in 2023.
- In 2023, energy products accounted for approximately C$133.6 billion, or more than 80 per cent of Alberta’s exports to the U.S.
- The Governors’ Coalition for Energy Security’s 12 signatory states include Louisiana, New Hampshire, Indiana (Governor Eric Holcomb), Alabama (Governor Kay Ivey), Georgia (Governor Brian Kemp), Tennessee (Governor Bill Lee), South Dakota (Governor Kristi Noem), Mississippi (Governor Tate Reeves), Arkansas (Governor Sarah Huckabee Sanders), Oklahoma (Governor Kevin Stitt), Wyoming (Governor Mark Gordon) and Virginia (Governor Glenn Youngkin).
Helping builders by putting an end to housing delays
Alberta’s new Stop Housing Delays online portal will allow developers, municipalities and other housing partners to report red tape and unnecessary home-building delays.
Alberta’s government is focused on ensuring Albertans have access to the housing they need, and that means working to streamline processes, cut red tape and reduce delays that are slowing housing construction down. As part of this work, government has launched a new online portal to help in these efforts.
The Stop Housing Delays online portal is now available for developers and municipal authorities to help identify areas that are preventing fast and efficient residential construction. This portal will help government identify and address barriers to building homes across the province.
“The Stop Housing Delays portal will allow Alberta’s government to hear directly from developers, municipalities and other partners on where delays are happening in the construction process. This will help identify and remove barriers, ultimately getting homes built faster and continuing Alberta’s record home-building pace.”
“Alberta’s government will continue to work with municipalities and find solutions to speed up the home-building process. The Stop Housing Delays portal will give us another tool to inform those discussions and identify areas where we can improve the pace of home building.”
Once developers, municipalities or industry partners have submitted their issue using the online form, government will collect and assess the information provided. Alberta’s government will be taking a collaborative, cross-ministry approach to ensure the appropriate departments are working together to find solutions where possible. Solutions may range from minor changes to policy reform.
Alberta’s government continues to support builders and encourage new residential housing construction by reducing red tape, incentivizing housing construction and supporting innovative strategies to build homes faster than ever.
“This webpage is an excellent opportunity to gather knowledge and further eliminate red tape. Government has been persistent in our approach of cutting red tape and removing roadblocks, and this will help to speed up residential construction. I look forward to hearing from developers and our other partners on how we can help get projects moving and Albertans in homes.”
Alberta continues to see strong housing starts and increases while other provinces across Canada are seeing a reduction in housing starts. The first half of 2024 saw 9,903 apartment unit starts in the province. This marks the highest amount in any half year in Alberta’s history, breaking the previous record of 9,750 set in 1977. Albertans will benefit from 33,577 new housing starts from January through September 2024, up 35 per cent from the same period last year. Alberta’s government remains focused on working with industry and non-profit partners to ensure that the province’s growing population has access to the housing it needs.
“This portal is a valuable tool for industry to highlight gaps, barriers and delays that may need to be prioritized and addressed by either local or provincial governments. Real solutions can only emerge through transparency, open communication and collaboration. This is an important step toward identifying the unique challenges each region and municipality faces in delivering attainable housing.”
Quick Facts
- Housing starts for January – September 2024 compared with January – September 2023
- Provincewide: 33,577 compared with 24,904 (up 35 per cent)
- Edmonton: 13,359 compared with 9,099 (up 47 per cent)
- Calgary: 17,414 compared with 14,141 (up 23 per cent)
- Lethbridge: 599 compared with 148 (up 305 per cent)
- Red Deer: 314 compared with 146 (up 115 per cent)
- Data shows Alberta had 10,699 purpose-built rentals, making up 32 per cent of all housing starts.
- Since 2019, Alberta’s government has invested almost $850 million to build more than 5,100 units and close to 900 shelter spaces. This includes projects we have committed to, that are in progress and that are complete.
- Together with its partners, Alberta’s government is supporting $9 billion in investments into affordable housing to support 25,000 additional low-income households by 2031.
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