Mason: Albertans paying the most ever for power thanks to PC deregulation

January 04, 2012

Alberta’s NDP Opposition leader Brian Mason says lowering power prices must be a top priority for 2012 as the year begins with Albertans paying the most ever for electricity.

“High power rates put the squeeze on family budgets, especially through this post-holiday time. PC power deregulation is failing to protect families from painful hits to the wallet,” Mason says. “Power-company CEOs are paid millions in salaries and bonuses while families are pinched. This system doesn’t work.”

Alberta power consumers will pay on average 15.2 cents per kilowatt hour in January – an all time record for the monthly rate. The rate is double what Albertans paid in January 2011.

Albertans are suffering dramatic shifts in rates month to month. The Industrial Power Consumers Association measurement of price volatility shows prices are twice as volatile this year compared to Jan 2010. Wildly shifting power prices make it more expensive for wholesalers to buy hedges against future prices, a cost that’s passed on to consumers.

“A regulated system would keep prices low and steady so Albertans can budget properly,” Mason says. “I commit to Albertans that as premier I would regulate power prices in Alberta so this most essential service is affordable for all.”

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NOTE: The charts below showing fixed monthly electricity price, and price volatility, are sourced from the Industrial Power Consumers Association of Alberta.