Calgary – David Swann, Leader of the Official Opposition and Critic for Energy, says that the Stelmach administration’s characteristic disregard for consumer protection in the electricity market has raised the cost of living for thousands of Albertans, and leaves people vulnerable to exploitation by power companies.

Starting today, electricity costs will fluctuate much more because of a change to the way prices are calculated. For the last five years, electricity prices were based on a mix of long-term and short-term market prices; tomorrow, prices will be based solely on next month’s projected market price. That means more volatility in power bills.

“For Albertans who don’t like to see wide swings in their power bills – for example, people on fixed incomes – they’ll be even more tempted to enter long-term contracts with power companies who guarantee a fixed rate,” Swann says. “But here’s the problem: these contracts often result in higher power bills, on average, than the variable rate option – and they also often come with excessive fees for changing or cancelling your contract, as well as hefty administration fees.”

Direct Energy, for example, charges $400 if you cancel their five-year fixed contract. They also charge $9.00 per month for administration costs. And their current rate is 7.99 cents per kilowatt hour, which is more expensive than the current regulated rate option of 6.5 cents per kilowatt hour. Just Energy charges $75 to cancel their contract, with a $6.90 per month administration fee.

Not every retailer charges these exorbitant fees, but not every consumer has the time to carefully pore over the details of electricity contracts. Swann worries that vulnerable people will be victimized by pushy marketing ploys.

“The Stelmach administration hasn’t done nearly enough to educate or protect consumers,” Swann says. “An Alberta Liberal government, on the other hand, would ensure that people don’t get taken advantage of. We’d limit exit fees and administrative fees. And we’d make it easier for Albertans to make the right choice by posting price forecasts where everyone can find them, and presenting that information in a way that’s easy for everyone to understand.”

“Alberta used to enjoy among the lowest electricity prices in the nation,” Swann says. “Thanks to Tory bungling, our prices are now among the highest. Deregulating the electricity market was a huge mistake, one that a Liberal administration would never have made.”

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