Skyrocketing utility bills in Alberta have homeowners concerned

Surging consumer prices and the phaseout of cheap coal are pushing utility bills in Alberta to shocking heights.

Homeowners who aren’t locked into fixed contracts for their natural gas and electricity are reporting huge increases in their bills this winter.

Calgary resident Beverley Hejduk says she lost her normal composure when she opened her January utility bill this week and saw the $1,100 price tag.

“It’s outrageous,” said Hejduk.

In her 1,100-square-foot bungalow, Hejduk says her monthly winter utility bills are typically $400 to $500.

“My first reaction was, ‘did I miss paying last month?’ And then I looked and no, that’s all for just one month.”

The Consumers’ Coalition of Alberta says they’ve heard from people whose home heating costs have doubled or even tripled year-over-year.

“Homeowners who haven’t signed onto a fixed contract for their heating and electricity [are] instead choosing to pay a floating rate that fluctuates with market prices are seeing a significant increase in costs this winter,” Jim Wachowich, spokesman for the coalition, said.

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Experts say natural gas and electricity rates in Alberta have swung to near record highs after seven years of depressed prices related to the oil and gas downturn.

Joel MacDonald, founder of Edmonton-based energy rate comparison site EnergyRates.ca, said there are a number of factors behind the spike in prices, not the least of which was a January deep freeze which increased both demand and consumption of electricity and gas.

According to Alberta-based utility provider ATCO Gas, Albertans use about two to three gigajoules per month of natural gas in the summer, but closer to 10 to12 GJ per month in the winter.

But MacDonald said the biggest factor behind the startling bills consumers are receiving is the commodity boom. The price of natural gas in November was up 77 per cent compared to a year earlier.

“We’re coming off a period of historical lows for electricity and natural gas, and switching onto a period of near-historical highs,” he said. “The swing has been extreme.”

“The Alberta (electricity) grid system is relatively unique,” MacDonald said.

”Our economy is heavily fused to the oil and gas sector, so as oil prices go up, so does overall grid demand.

“It’s that double-edged sword because overall grid demand will drive up utility prices.”

The closure of cheap coal-fired power plants, which used to be Alberta’s main source of electricity, is also putting pressure on bills.

On Thursday, Alberta’s Associate Minister for Natural Gas and Electricity Dale Nally said he recognizes the financial pressure that high utility prices can place on Albertans.

“It is important to note that electricity rates are based on market conditions, namely supply and demand which are outside of government’s control,” Nally said.