By Nick Clark
ENMAX runs a complicated business and, regardless if you agree or not, their executives are paid what the City of Calgary believes they are worth. While you may not like it, ENMAX is an admirable company in the eyes of many.
However, look at the numbers. If you are not comfortable with what you see, you can always vote out the city council in the next civic election. They oversee the municipal utility. You can also vote another way: Simply move to another electricity retailer that offers lower energy rates. The UCA (Utilities Consumer Advocate) has lots of options on their new website where consumers can shop. It is a great resource for Albertans.
ENMAX Earnings Down 73%
For the year ending 2015, the Consolidated Financial Information published by ENMAX, showed these results:
For the year ending 2015, the Consolidated Financial Information published by ENMAX, showed these results:
- Net earnings fell 73% from $184 million to $49 million;
- Total revenue dropped 11% between 2014 and 2015;
- 2016 First Quarter results reveal Net Earnings down a further 50% compared to the same period in 2015.
On June 1, the City of Calgary's local access fee will go up by 4.9% compared to the month of May, as ENMAX increases their Regulated Rate next month. During the first 5 months of 2016, the regulated ENMAX rate was 40% above the Floating Rate offered by competitive retailers in Alberta.
Switching away from ENMAX to save money on your utility bill is the easiest message you can give this Mayor. ENMAX also charges more for administration fees. On average, their fees are about 15% higher than other competitive market participants.
Most people look upon ENMAX, DIRECT and ATCO as being the Big Three Utilities. It’s true, they are successful. Still, look a little deeper and ask yourself if you agree with the Mayor’s accolades as they relate to ENMAX.
In particular, consider the outsourcing strategies that ENMAX followed. These 3 Big Utilities, in recent years, have been exporting jobs out of the province - offshore - to companies in India. ENMAX defended its position when they exported IT jobs to the TATA Group in India. Calgary’s councilors tell us the move was necessary to remain competitive. DIRECT outsourced to HCL in India and, recently, ATCO did the same in a 10-year billion dollar outsourcing agreement with WIPRO of India.
In a time when Alberta is struggling with job losses in the energy sector, isn’t it fundamentally wrong for our municipal and regulated utilities to be shipping jobs out of Alberta? In our opinion, this should never have been allowed to happen. It is wrong to turn a blind eye to outsourcing.
Utility Consumers Advocate: You have a Choice
There are more than two dozen privately run electricity retailers in Alberta to discover. Kudos to the Utility Consumers Advocate for giving equal billing to all the retailing options available to consumers in the province. Check it out....there' s a new cooperative…an Aboriginal venture…commercial endeavours such as Fluent and Link Energy…retailers focused on green and solar including SOLARMAX and Bow Valley… plus municipalities such as Olds and LaCombe or Get Energy in Fort Mac and Peace Power in Grande Prairie. Plus another dozen or so independent firms like Adagio and Vector.
Check your ENMAX Regulated Rate on your utility bill. If you paid more than 2.5 cents per kWh last month – you overpaid.
There are a number of retailers in Alberta that offer lower retail and administration prices. On top of that, they are donating 10% of the income earned during the balance of 2016 to the Red Cross to help residents up in Fort Mac.
Here is a blog that you may find of interest published on the Green Alberta Energy website – posted by Sharon A.M. MacLean.