Alberta
The electricity price cap in Alberta is gone. What now?
How the electricity price cap removal will affect Alberta utility bills (Photo by Helloquence on Unsplash)
Many Albertans have been reading the news about higher regulated electricity rates in December, after the price cap on energy rates was scrapped by the province. Even though this was announced by the Government of Alberta in late October, as part of the new budget, people only started to hear more about it on November 30. That was when the regulated energy providers announced their new power rates; this time, without a cap on prices.
The program was created by the NDP government in 2017 to cap energy rates for residential and small business consumers. Regulated rate (RRO) consumers wouldn’t pay more than 6.8 cents per kWh, meaning that any costs above that threshold were paid by the province. The main goal behind the cap was to protect consumers from rate spikes and, consequently, financial uncertainty.
In order to predict how your energy bills (and your wallet) could be impacted by this change, we need to take a look at historical prices, future market trends and what prices would’ve been this past year without the cap.
How the 6.8 cents/kWh price cap worked
Regulated electricity rates in Alberta change every month. Although the prices need to be approved by the Alberta Utilities Commission (AUC), they can be affected by multiple factors, including politics, natural disasters, economic reasons and more.
In the past 10 years, electricity rates in Alberta went as high as 15.06 cents/kWh and as low as 2.88 cents/kWh. The cap provided protection for Albertans as the government subsidized any prices above 6.8 cents/kWh.
The effects of the electricity price cap in Calgary in 2019
According to the Utilities Consumer Advocate (UCA), regulated electricity rates in the Calgary area (ENMAX) went above the 6.8 cents/kWh during most months of 2019, except for March, April, May and June.
- January: 7.727 cents/kWh
- February: 7.009 cents/kWh
- March: 5.914 cents/kWh
- April: 6.067 cents/kWh
- May: 6.390 cents/kWh
- June: 6.391 cents/kWh
- July: 8.434 cents/kWh
- August: 8.805 cents/kWh
- September: 7.590 cents/kWh
- October: 6.736 cents/kWh*
- November: 7.399 cents/kWh
- December: 7.320 cents/kWh
*According to the UCA, prices still reached the price cap in October, although they were officially 6.736 cents/kWh.
This means the average price would’ve been approximately 7.15 cents/kWh, which makes quite a difference in energy bill terms, considering that the average household in Canada consumes around 1,000 kWh per month. After an entire year of high electricity rates, this difference looks even larger.
The effects of the electricity price cap in Edmonton in 2019
In the Edmonton region (EPCOR), the difference between what consumers paid and what they would’ve paid without the cap is even more noticeable. According to the UCA, regulated prices went above the 6.8 cents threshold in all months except for March.
Without the cap, the average price per kWh in the Edmonton area in 2019 would’ve been 7.84 cents/kWh.
- January: 7.733 cents/kWh
- February: 7.189 cents/kWh
- March: 5.991 cents/kWh
- April: 6.981 cents/kWh
- May: 6.990 cents/kWh
- June: 7.231 cents/kWh
- July: 9.578 cents/kWh
- August: 10.191 cents/kWh
- September: 8.2 cents/kWh
- October: 7.342 cents/kWh
- November: 8.63 cents/kWh
- December: 8.069 cents/kWh
Are my electricity bills going to increase in the months ahead?
Now that the price cap is gone, many households and small businesses are concerned about facing higher utility costs in the months ahead.
Power prices reached historically low averages in 2017, but the average rate in Alberta was 7.3 cents/kWh for the 2002-2018 period, which is considerably above the price cap, especially in cents/kWh terms.
The future of electricity prices is still unclear. Consumers will have to wait and see whether rates will go up or down. We can expect to see RRO prices fluctuate slightly more now that they are free to go above the 6.8 cents/kWh threshold, as it happened in December and for most of the time in 2019.
The new Red Deer Justice Centre will help Albertans resolve their legal matters faster.
Albertans deserve to have access to a fair, accessible and transparent justice system. Modernizing Alberta’s courthouse infrastructure will help make sure Alberta’s justice system runs efficiently and meets the needs of the province’s growing population.
Alberta’s government has invested $191 million to build the new Red Deer Justice Centre, increasing the number of courtrooms from eight to 12, allowing more cases to be heard at one time.
“Modern, accessible courthouses and streamlined services not only strengthen our justice
system – they build safer, stronger communities across the province. Investing in the new Red Deer Justice Centre is vital to helping our justice system operate more efficiently, and will give people in Red Deer and across central Alberta better access to justice.”
Government of Alberta and Judiciary representatives with special guests at the Red Deer Justice Centre plaque unveiling event April 22, 2025.
On March 3, all court services in Red Deer began operating out of the new justice centre. The new justice centre has 12 courtrooms fully built and equipped with video-conference equipment to allow witnesses to attend remotely if they cannot travel, and vulnerable witnesses to testify from outside the courtroom.
The new justice centre also has spaces for people taking alternative approaches to the traditional courtroom trial process, with the three new suites for judicial dispute resolution services, a specific suite for other dispute resolution services, such as family mediation and civil mediation, and a new Indigenous courtroom with dedicated venting for smudging purposes.
“We are very excited about this new courthouse for central Alberta. Investing in the places where people seek justice shows respect for the rights of all Albertans. The Red Deer Justice Centre fills a significant infrastructure need for this rapidly growing part of the province. It is also an important symbol of the rule of law, meaning that none of us are above the law, and there is an independent judiciary to decide disputes. This is essential for a healthy functioning democracy.”
“Public safety and access to justice go hand in hand. With this investment in the new Red Deer Justice Centre, Alberta’s government is ensuring that communities are safer, legal matters are resolved more efficiently and all Albertans get the support they need.”
“This state-of-the-art facility will serve the people of Red Deer and surrounding communities for generations. Our team at Infrastructure is incredibly proud of the work done to plan, design and build this project. I want to thank everyone, at all levels, who helped make this project a reality.”
Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick facts
- The new Red Deer Justice Centre is 312,000 sq ft (29,000 m2). (The old courthouse is 98,780 sq ft (9,177 m2)).
- The approved project funding for the Red Deer Justice Centre is about $191 million.
Show your Alberta side. Buy Local. |
When the going gets tough, Albertans stick together. That’s why Alberta’s government is launching a new campaign to benefit hard-working Albertans.
Global uncertainty is threatening the livelihoods of hard-working Alberta farmers, ranchers, processors and their families. The ‘Buy Local’ campaign, recently launched by Alberta’s government, encourages consumers to eat, drink and buy local to show our unified support for the province’s agriculture and food industry.
The government’s ‘Buy Local’ campaign encourages consumers to buy products from Alberta’s hard-working farmers, ranchers and food processors that produce safe, nutritious food for Albertans, Canadians and the world.
“It’s time to let these hard-working Albertans know we have their back. Now, more than ever, we need to shop local and buy made-in-Alberta products. The next time you are grocery shopping or go out for dinner or a drink with your friends or family, support local to demonstrate your Alberta pride. We are pleased tariffs don’t impact the ag industry right now and will keep advocating for our ag industry.”
Alberta’s government supports consumer choice. We are providing tools to help folks easily identify Alberta- and Canadian-made foods and products. Choosing local products keeps Albertans’ hard-earned dollars in our province. Whether it is farm-fresh vegetables, potatoes, honey, craft beer, frozen food or our world-renowned beef, Alberta has an abundance of fresh foods produced right on our doorstep.
Quick facts
- This summer, Albertans can support local at more than 150 farmers’ markets across the province and meet the folks who make, bake and grow our food.
- In March 2023, the Alberta government launched the ‘Made in Alberta’ voluntary food and beverage labelling program to support local agriculture and food sectors.
- Through direct connections with processors, the program has created the momentum to continue expanding consumer awareness about the ‘Made in Alberta’ label to help shoppers quickly identify foods and beverages produced in our province.
- Made in Alberta product catalogue website
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