Fewer utility customers registering for fixed-rate option this year

“So the fixed rate currently the way it works is the weighted average over 12 months. It takes into account all the seasons, the seasonal differences and it’s designed to take away that risk factor for people,” she explains.

“Some months the regulated rate option may be higher or lower than the fixed rate. It’s, the fixed rate, is geared to take away the risk factor and at the end of the year they should be fairly comparable.”

Last summer, 47 per cent of natural gas customers and 52 per cent of power customers were on the fixed rate. Now eight per cent of customers are on the fixed natural gas rate and 11 per cent on the fixed power rate

A chart on the city’s website shows that since the start of 2023, the fixed price for natural gas has been higher than the default rate every month. On the power front, the savings on the fixed price have all but evaporated, even with the province’s temporary price cap and recovery figures taken into account.

Image From www.medicinehat.ca

Smith says customers should be aware the fixed-rate options are a 12-month contract, and the rate is re-calculated each quarter. So someone who registered for the option in the first quarter of the year will pay a different rate than someone who registered in the second quarter and so on.

This year the city also introduced a third variable rate option, for which a small number of customers have signed up. At the end of each month the daily average cost is calculated and a premium is added to the bills. It’s also a 12-month contract.

Smith says contracts are separate from each other, so customers can choose to have either or both utilities on either the fixed or variable rate options or stick with the default option.

The city announces rates at the beginning of each month, but customers have time to decide if they want to switch their rate option because it’s based on their own billing period.

Smith says the City of Medicine Hat website has the history, information and details for customers to decide which option is the best for them.

by Chris Brown

Fewer utility customers registering for fixed-rate option this year

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