Understanding Floating Electricity Rates with PowerBill

Feb 10, 2022Blog, Electricity

No matter where you are in Alberta, you need to think about electricity. Whether you’re a household, business, or industrial operation, reliable, affordable utility services are necessary for nearly every part of day-to-day life, both at work and at home.

In Alberta, electricity consumers can choose who to buy their electricity from. Instead of relying on your area’s regulated rate provider (RRO), you have the option to purchase electricity service from independent retailers (like PowerBill) who offers a fairer deal. Not all independent retailers are the same, however; it’s essential to know how your electricity provider 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 out how PowerBill determines its electricity rates for customers below. Additionally, you 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 sells a customer electricity, we have to purchase it from the wholesale electricity market. In Alberta, the wholesale electricity market is operated by the Alberta Electric System Operator (AESO). They pool electricity generated by all of the different sources active in Alberta before selling it to retailers at the price they determine.

The AESO’s electricity price changes from hour to hour based on supply, demand, and other factors. To learn more about wholesale electricity pricing and to view the current pool price, visit the AESO website.

Determining a Fair Price for Customers

Many electricity providers don’t like talking about how they calculate electricity rates. While we can’t speak on their behalf, we also know that many retailers often try to work hidden fees, markups, and other charges into their electricity rates. At PowerBill, however, we believe in simplicity and accountability for our customers; as such, we ensure that we’re open and transparent about how we calculate our electricity rates.

Electricity charges are calculated in kilowatt-hours (kWh), measuring how much electricity you use. At PowerBill, our customers pay wholesale cost + $0.01/kWh. PowerBill’s floating rates mean that the amount you pay per kWh will vary month to month depending on the wholesale electricity cost. This is among the fairest deals available in Alberta today; if we spend less on electricity for our customers, we pass the savings directly to you, no questions asked.

Transmission and distribution charges also affect your electricity. Transmission charges cover the cost of moving electricity from its source to a storage facility, then eventually to a customer’s home. These charges are based on individual customers’ usage.

Distribution charges are based on how easy or difficult it is to get electricity through the grid to customers. For example, customers in rural areas may see slightly higher charges due to low population density, less infrastructure, and other factors.

Finally, administration fees cover the cost of providing billing, customer service, and other business costs. At a flat rate of $7.50/month, PowerBill’s administration fees are among the lowest in the industry, helping our customers save without compromising reliability or quality of service.

Simple Electricity with PowerBill

Electricity shouldn’t be complicated for Albertans; households and businesses shouldn’t have to deal with long-term contracts, hidden fees, and other utility companies’ bureaucracy to get the service they need. With low electrical floating rates, no hidden markups, and some of the industry’s lowest fees, PowerBill’s commitment to keeping it simple gives our customers clarity, peace of mind, and fairness along with reliable electricity service.

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, 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.