How Electricity Rates Are Determined with PowerBill

Mar 12, 2021Blog, Electricity

Everybody needs electricity. Whether you’re a household or small business, our customers depend on reliable, affordable utility services for all aspects of their daily lives.

In Alberta, consumers have a choice about who their energy retailer is. Instead of using the regulated rate provider, many consumers buy their services from independent retailers (like us!) who strive to offer a better deal. Not all of these companies are created equal, however; it’s essential to know how your utility company calculates your electricity rates to ensure you’re getting the best deal available for you and your family.

To help get you started, you’ll find a brief overview of how PowerBill determines its electricity rates. Additionally, you’ll find more information about how keeping it simple with PowerBill can make fair electricity rates more accessible than ever.

Buying Electricity on the Wholesale Market

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.

The price of AESO’s electricity changes hourly depending on supply, demand, and other factors. To learn more about the factors that influence wholesale electricity pricing and to view the current pool price, visit the AESO website.

Charging a Fair Price for Our Customers

Some energy companies don’t like talking about how they calculate their electricity rates. These companies will often try to work in hidden fees, unfair markups, and other charges into their electricity rates. However, as a company dedicated to fairness and transparency in our practices, PowerBill is proud to share how we calculate our electricity rates.

Energy charges are calculated in kilowatt-hours (kWh) and are directly related to how much electricity you use. At PowerBill, our customers pay the wholesale cost + $0.01/kWh. PowerBill’s floating rate plan means that the amount you pay per kWh will vary from month to month depending on the wholesale electricity cost. This is the fairest deal available on the market today; if we spend less on electricity for our customers, we pass the savings directly to you, no questions asked. Our floating rates are significantly lower on average than what many larger companies are offering today.

Transmission and distribution charges are also key factors in your monthly bill. Transmission covers the cost of moving energy from its source to a customer’s home or business. These charges are based on individual customer’s usage.

Distribution costs are typically based on how easy or difficult it is to get to customers. For example, customers in rural communities may see slightly higher rates due to low population density.

We also charge a flat administration fee to cover the cost of providing billing and customer service. At $7.50/month, PowerBill’s admin fees are among the lowest available today, keeping more money in your pocket without compromising reliability or quality of service.

Depending on your service area, customers may see additional charges on their bills. To learn more about your bill, visit the Utilities Consumer Advocate website for information on energy rates in Alberta.

Keeping It Simple with PowerBill

Basic needs like electricity shouldn’t be complicated; households and businesses shouldn’t have to navigate long-term contracts, hidden charges, and other utility companies’ tricks to get the services 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.

At PowerBill, we strive the be the easy choice for Albertans’ electricity needs. This starts with making it easier than ever 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 if you wish to make the switch to fairly priced utilities 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.