Are Floating Rates the Best Deal for Albertans?

Mar 12, 2021Blog, Electricity

Albertan households have many choices when it comes to buying electricity. Instead of using the regulated rate provider, many consumers buy their services from independent retailers (like us!) who strive to offer a better deal. These retailers typically offer one of two options: fixed-rate electricity plans charge the same amount per kilowatt-hour (kWh) over a long period of time, while floating-rate plans charge a variable amount for your electricity depending on market conditions.

So, which option is right for you?

At PowerBill, we offer floating-rate plans that give consumers a simple, fair deal on their electricity. Read on to learn more about how floating rates work, as well as how PowerBill can help you keep it simple and save.

How Electricity Rates Work

Before PowerBill (or any other company) can sell a customer electricity, we must first buy it from the wholesale electricity market. Alberta’s electricity market is operated by the Alberta Electric System Operator (AESO), who is in charge of pooling electricity generated by different sources and selling it to retailers (like us) at a fair, competitive rate.

Once a retailer has purchased electricity, it’s up to them to decide what to charge their customers. With fixed-rate plans, retailers charge their customers the same amount per kWh regardless of the wholesale price. When wholesale electricity prices are high, their customers may be getting a good deal. However, when the wholesale prices are low (as they have been for the last decade), consumers may end up paying more than they should for their electricity.

In contrast, floating-rate plans adjust their rates to reflect the current price of electricity on the wholesale market. When prices rise, so will your cost per kWh, but when prices are low, your household can enjoy the benefits of lower electricity costs (instead of lining a corporation’s pockets!).

Which Rate Plan is Best For Me?

Fixed-rate plans offer consistency for customers. No matter what the market’s doing, you’ll always know how much you’ll be paying for your power. However, this security comes at a cost; because your rate is “locked in,” you may end up paying more than your fair share for electricity. Fixed-rate plans don’t allow customers to take advantage of low wholesale prices and may end up costing you more in the long term.

On the other hand, floating rate plans are flexible and adjust to reflect market conditions. When energy costs are low, consumers pay less; it really is that simple! Floating rates are historically lower on average, making them a good option for consumers who want to pay as little as possible when rates are low and are comfortable having a more flexible budget.

Low Floating Rates with PowerBill

Some energy companies like to be vague about how they calculate their electricity rates. These companies (even ones offering floating rates) will often try to work hidden fees, unfair markups, and other charges into their electricity rates. Unlike them, PowerBill is dedicated to keeping it simple by providing fair, transparent floating rates for electricity.

For electricity, our customers pay the wholesale cost + $0.01/kWh. This is the fairest deal available on the market today; if we spend less on electricity, we pass the savings directly to you, no questions asked. Our floating rates are significantly lower than what many larger companies are offering today.

Keeping It Simple with PowerBill

Electricity shouldn’t be complicated; households and businesses shouldn’t have to navigate long-term contracts and hidden charges to get the service they need. With low floating rates for electricity, no hidden markups, and some of the industry’s lowest administration fees, PowerBill’s commitment to keeping it simple gives our customers clarity and peace of mind when it comes to their utilities.

Keeping it simple also means making it easy to get started! Simply fill out our online signup form, submit it to us, and let us do the rest. We’ll work with you to seamlessly transition from your current provider, and get you started with fair utility service for you and your family.

Ready To Get Started?

Sign up now using our online portal, or contact us today to learn more about PowerBill’s utility solutions.