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.”

Related Topics:#AlbertaNDP #RachelNotley #UtilityBillRelief

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Low oil prices could have big consequences for Alberta’s finances

Published on April 26, 2025

Todayville

From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

Alberta

Governments in Alberta should spur homebuilding amid population explosion

Published on April 26, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in Calgary, Edmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.