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CALGARY, Jun 26, 2006 -- Canada NewsWire
The Regulated Rate Option (RRO), which applies to all households and small businesses that have not chosen to enter into an energy plan with a retail supplier, will rise effective July 1, 2006 to a starting price of 7.553 cents per kilowatt hour (kWh) compared with 5.594 cents for the first half of 2006. The RRO market prices are procured through an auction bidding process by ENMAX Power's RRO provider, which is approved by the Alberta Energy and Utilities Board (EUB). This increase is the result of a rise in provincial market prices for electricity since the last time the RRO was procured from the market in 2004. Excluding such energy costs, much of the rest of the EUB-regulated parts of the bill have remained essentially flat since the introduction of deregulation. "The now-expired 2004 purchase of energy meant that Calgary had recently enjoyed lower electricity prices than anywhere else in the province," said Gary Holden, CEO of ENMAX Power Corporation. "We have been warning Calgarians of the likelihood of increases for some time and we are now seeing prices that are consistent with the prevailing market." New provincial regulations mean that the RRO will now fluctuate more often with the energy market, depending on changing weather, seasonal consumption demands and fuel costs such as natural gas prices. This change increases the importance of consumers examining their own energy cost control choices because the RRO now contains a variable portion that can change each month. As a result, customers' electricity bills may fluctuate month to month, rather than quarterly or yearly, as they have in the past. What is a Regulated Rate Option (RRO)? The RRO is the default option when no choice is made by a consumer. The owner of the local distribution system is required by legislation to provide the RRO to eligible customers (residential and small commercial customers who consume less than 250,000 kWh of electricity each year) in their service area. ENMAX Power is the local distribution company in Calgary. Anyone who has not chosen to enter into an energy plan with a retail supplier receives the RRO by default. What can customers do? ENMAX Power, through its RRO provider, is the company responsible for providing the RRO in Calgary and fully supports the competitive market for electricity and consumers' rights to choose their own energy plan. Customers have options regarding their energy bill. They are: SOURCE: ENMAX Corporation News Provided By |
