Why dotransmission and distribution feesmake up most ofmyenergy bill?Why do I pay huge delivery charges even when I live in an energy-efficient home or own a solar PV system? What dotransmission and distribution fees pay for?
Well, let's think of it this way: When you order an item online and need it delivered to your home, you pay shipping fees. So, in this case, to have your electricity and gas delivered right to your "doorstep" and stay connected to the grid, you need to pay the delivery charges.
Transmission and distribution fees pay for the cost of installing, operating, and maintaining Alberta's grid infrastructure that's needed to deliver energy to your home. For electricity, this infrastructure includes poles, wires and transformers, and for natural gas, infrastructure includes pipes and compressor stations.
You are paying for the maintenance and development of our grid to ensure it is working for you and every Albertan 24 hours a day and keeping the lights on throughout our province. Did you know that Alberta has more thanandbringing power to over four million people? With that much power demand, we need to ensure our grid is reliable and resilient.
But who decides how much we need to pay?
rates are charged by distribution companies and regulated by the(AUC), an independent agency associated with Alberta Energy. The AUC holds rate hearings to ensure you receive safe and reliable services at a reasonable cost.However, rural electrification associations (REAs), municipally owned utilities and natural gas co-ops are not regulated by the AUC.
Regardless of which energy provider you're with, your distribution company and the delivery portion of your electricity bill or natural gas bill will stay the same from one retailer to another.
Distribution companies in Alberta
Electricity
- ATCO Electric
- City of Lethbridge
- City of Medicine Hat Electric
- City of Red Deer
- ENMAX Power Corporation
- EPCOR Distribution & Transmission Inc.
- FortisAlberta Inc.
- Town of Cardston
- Town of Ponoka
Natural Gas
- Apex Utilities
- ATCO Gas
- City of Medicine Hat Natural Gas
Transmission charges for electricity
Transmission charges in Alberta have doubled over the last 10 years due to the expansion of grid infrastructure and large transmission projects.As a result, transmission charges now make up.
Distribution charges for electricity
Distribution charges vary according to location and are higher for customers in rural Alberta than for those in urban areas because of the low population density and longer distances between customer sites. This is why a customer in ENMAX’s service area pays less than a customer in ATCO’s service area.On average, distribution charges make up.
Rate riders
You may have noticed a “Rate Rider” credit or charge on your bill.These rate riders approved by the Alberta Utilities Commission (AUC) enable distribution companies to recover operational costs that are not included in their monthly approved rates. These are some examples:
- Municipal franchise fees
- Transmission surcharges
- Special facilities charges
- Balancing Pool riders
Delivery charges for natural gas
ATCO Gas’ delivery charge is made up of fixed and variable portions. The fixed delivery charge covers the cost of building, operating and maintaining their distribution system. The variable charge also covers the cost of maintaining the system but is calculated based on the amount of natural gas you consume.
From 2013 – 2022,andfor residential customers.
What’s to come with net zero?
Canada and over 120 other countries have committed to.
Canada’s commitment to net zero will increase electricity demand (e.g., EV adoption) and require more grid infrastructure. As we continue to decarbonize and build more solar and wind farms, more high-voltage transmission lines and better connections will need to be built throughout our communities.
As transmission and distribution rates continue to rise, what can we do about it?
Since Direct Energy is the only major retailer that isn’t a distributor and does not have control over the transmission and distribution fees being charged to our customers, we are constantly advocating on our customers' behalf to ensure those fees are priced fairly.
If you would like to voice your opinion about these delivery charges, we recommend reaching out to the Utilities Consumer Advocate (UCA) with your questions or concerns:
Phone: 310-4822 (In Alberta)
Phone: 780-644-5130 (Outside Alberta)
E-mail: UCAhelps@gov.ab.ca
Hours of operation: Monday-Friday 8:15am - 4:30pm
