What are these energy contracts they’re now selling?

As of June 2003, Alberta’s electricity and natural gas industries are fully deregulated. For consumers, this means that you must decide whether to sign electricity and natural gas contracts. An energy contract is an agreement between you and an energy retailer (also called an energy marketer) to provide you with electricity or natural gas at a fixed price for a certain period of time. In other words, the price you pay for electricity will be the same every month for the duration of your contract. Contracts have benefits, but they also have drawbacks. Read on to find out more.

Do I have to sign an energy contract?

No! If you don’t sign a contract, you can remain on the RRO (or regulated rate option) for electricity prices until 2006. The RRO is fixed – you pay the same price for electricity every month. After 2006, if you haven’t signed a contract, you will pay a “flow-through” or “spot market” price for electricity. This means that you will pay the market price for electricity every month. The market price changes rapidly, so your bills will change, too.

What are the drawbacks of signing a contract?

Contracts give you certainty, but certainty comes at a price. Energy retailers will charge you a premium (built into the price they charge for electricity or natural gas) in exchange for guaranteeing stable prices. The price you pay will be the same every month, but in the long run there’s a good chance you will be paying more than someone who chose to pay the market price.

Why do I feel like I am choosing between a rock and a hard place?

Because you are! Deregulation picks winner and losers. The ‘choice’ between volatile monthly rates and energy contracts (with premiums built right in!) proves consumers lose and industry wins.

Who should sign a contract?

The Alberta Liberal Opposition believes that no Albertan should have to sign a contract and that there should be one low electricity rate for all Albertans. Unfortunately, deregulation doesn’t offer this. If you need to plan ahead and cannot afford wild ups and downs in your bills, you should consider locking into a contract to give yourself certainty.

What’s a better deal, the default option or an energy contract?

It is anybody’s guess! No one knows for certain whether the spot electricity price will average out to more or less than contract prices. The best deal is the Alberta Liberal Low-Cost Power for Alberta plan, which guarantees that everyone pays the lowest possible prices.

Air miles or two months free? How do I know which one is right for me?

Don’t get caught up in gimmicks that only disguise higher prices. The best way to choose a contract is to go back through your old bills and see what rate you paid for electricity (on average) over the last year. Try to find a contract that offers you a similar rate. Albertans are finding that regardless of what retailers offer to dress it up, electricity prices are still higher than what they should be. That’s the great rip-off of deregulation.

How can I be sure the company I am dealing with is reliable?

You can take action to protect yourself from scams. All energy retailers and door-to-door marketers must show identification, so ask for it. Before you sign a contract, you should also call Alberta Government Services (toll-free) at 1–877–427–4088 to make sure the retailer is licensed. You can also check the retailer registry online at http://www.customerchoice.gov.ab.ca.

If I don’t sign a contract will my power get cut-off?

No. As long as your payments are up-to-date, energy retailers cannot adjust, discontinue, disconnect, change or in any way alter your electricity service until after you send them a signed copy of an energy contract.

Do I have to sign on the spot?

No! The energy retailer must give you time to look over the contract and compare prices. You never have to sign on the spot.

Do I need separate contracts for electricity and natural gas?

No. You can choose whether you want separate contracts or whether you want to “bundle” your utilities together. Choose the option that gives you the best possible deal on both electricity and natural gas.

How can I be sure I am not paying too much?

The only way to guarantee that you don’t pay too much is to unplug deregulation. The Alberta Liberal Opposition’s Low-Cost Power for Alberta Plan guarantees that you always pay the lowest rate possible. Under deregulation, there is always the possibility of additional rate riders, premiums and hidden fees.

Why is the Alberta Liberal Opposition explaining contracts when they want to unplug deregulation?

The Alberta Liberal Opposition knows that deregulation in Alberta has failed and should be unplugged. However, only the Alberta government can decide to unplug. We won’t let Albertans struggle in the dark until the Alberta government realizes, like the government in California, that unplugging is the only solution to skyrocketing utility bills. Alberta consumers are entitled to the information they need to make wise decisions. We are committed to providing this information.

If there is a problem, who should I call?

Nothing is simple under deregulation. Here’s a quick guide to sorting out the confusion:

• If you experience a problem with a retailer or a door-to-door marketer, call Alberta Government Services at 1-877-427-4088 to report them.
• If you have a problem with your power service (such as an outage or fallen wire), you need to call your wire services provider (WSP). Their contact information should be listed somewhere on your power bill.
• If there is a problem with you power bill, call the energy retailer. Your retailer’s name and contact information should be printed prominently on the bill.

Wouldn’t it be easier if you only had to call one number?

With the Alberta Liberal Low-Cost Power for Alberta plan, Albertans would only have to deal with one power company for all their electricity needs.

What if I have a question that is not answered here?

Here are two places to call for help:

• You can call the government’s Public Information Centre at (780) 427-0265. You can call toll-free from anywhere in Alberta by first dialing the Rite Number, 310-0000.
• You can contact the Alberta Liberal Opposition through our website at http://www.albertaunplugged.com by calling the Rite Number, 310-0000, and asking to speak to the Official Opposition. We would be more than happy to listen to your concerns about energy deregulation and offer our solutions.



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