By: Nick Clark
Your comments are welcome following this blog. You can also find out more about how we're playing our part in building a fossil-free Alberta here Green Alberta Energy.
“Retail prices are determined by supply and demand,” challenged a Twitter follower last week. “You cannot predict lower [prices] a year head!!”
This gentleman didn’t believe we could reduce electricity rates in Alberta by 10% through 2017. He was correct to ask how it was possible.
It's possible because we purchased a hedge. This allowed us to set a price for a 2-year period since the hedge is based on prices set today. While the gentleman is correct saying retail prices fluctuate based on supply and demand (along with other factors), you are impacted only if you are on the floating rate. We locked into our 2-year fixed price for electricity to guarantee the low fixed price.
If you want to support Climage Change”, you have lots of choices today. Here’s 5 ways to consider:
So, if you have a home similar to one in the picture above (using about 850 kWh per month), here is what you will pay, if you buy from Spot Power.
The everyday retail price is 5.85 cents per kWh. But if you want 15% green, Spot Power has dropped the retail price to 5.45 cents per kWh to offset the incremental cost of Green. If enough people support this program, together we can help Green the Grid.
Here’s a tip: There are a number of Alberta retailers offering consumers a discount on the rate. If you just sign-up for the regular energy price, you will pay more compared to signing up for a minimum of 15% green. This makes Green Affordable.
Offering discounts to green the grid is an innovative idea. How’s it done? Simple: Just reduce profits and pass the savings onto the consumer.
You let us know what percentage of your monthly usage of electricity you would like to green.
“Retail prices are determined by supply and demand,” challenged a Twitter follower last week. “You cannot predict lower [prices] a year head!!”
This gentleman didn’t believe we could reduce electricity rates in Alberta by 10% through 2017. He was correct to ask how it was possible.
It's possible because we purchased a hedge. This allowed us to set a price for a 2-year period since the hedge is based on prices set today. While the gentleman is correct saying retail prices fluctuate based on supply and demand (along with other factors), you are impacted only if you are on the floating rate. We locked into our 2-year fixed price for electricity to guarantee the low fixed price.
"How’s it done? Simple: Just reduce profits and pass the savings onto the consumer."
Ways to "Green the Grid"
If you want to support Climage Change”, you have lots of choices today. Here’s 5 ways to consider: - EPCOR offers a 15%, 50% or 100% Green Energy Plan;
- Just Energy has a Green Plan at a 2-cent premium over its base rate;
- Direct Energy and ENMAX have not yet agreed to a green plan but you can green the energy you consume with them by buying an Add-On Package from Bullfrog, an Ontario based company;
- Over a dozen other Alberta-based companies, such as Spot Power, are plugging into the GreenAlbertaEnergy.ca program.
The numbers are calculated using an average residential home consumption of 850 kWh per month.
So, if you have a home similar to one in the picture above (using about 850 kWh per month), here is what you will pay, if you buy from Spot Power.
The everyday retail price is 5.85 cents per kWh. But if you want 15% green, Spot Power has dropped the retail price to 5.45 cents per kWh to offset the incremental cost of Green. If enough people support this program, together we can help Green the Grid.
Here’s a tip: There are a number of Alberta retailers offering consumers a discount on the rate. If you just sign-up for the regular energy price, you will pay more compared to signing up for a minimum of 15% green. This makes Green Affordable.
Offering discounts to green the grid is an innovative idea. How’s it done? Simple: Just reduce profits and pass the savings onto the consumer.
You let us know what percentage of your monthly usage of electricity you would like to green.