Fixed rate option offers stability

By Brian Konrad

More than half now on fixed power rate

Fixed-rate option for utilities growing in popularity

Jul 29, 2022 | 11:13 AM

MEDICINE HAT, AB — The gap between the regulated rates and the fixed rates for utilities in Alberta, has seen more people signing up for the fixed-rate option with the city of Medicine Hat.

The regulated rate for power in Alberta has increased by more than 150 per cent in the past 18 months.

Denise Schmaltz with the city says the fixed-rate option has been a hot commodity this year.

In 2019, only three per cent of customers were using the fixed rate, but the majority of electrical customers have made the switch now, with 52 per cent signed on for the fixed-rate option.

So far 47 per cent of natural gas customers prefer the fixed rate.

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The fixed rate for power is just over half what the regulated rate is, while the difference in rates for natural gas is more than double, making it an attractive option, says Schmaltz.

“Right now, for 2022, historically the six-month fixed rates have performed better, but there’s no guarantee that will continue,” explains Schmaltz.

“It really depends on the risk tolerance but the fixed rate does provide the stability, you know for six months you are paying that specific rate on your fixed-rate,” adds Schmaltz.

It is a six-month commitment when choosing the fixed rate, but you can opt-out anytime after that.

As well, Alberta has $50 monthly rebates for electricity that are automatically applied to billing, and starting in October, the province will have rebates for natural gas will begin, and will also be automatically deducted from your utility bill.

Directions for electing the fixed rate option can be found on the city’s website.