How Much Does Electricity Cost in the ATCO Electric Service Area?

If you are in the ATCO Electric distribution service area you can purchase RRO electricity from Direct Energy Regulated Services (DERS). How does the price you pay for electricity in the ATCO Electric service area compare with the rest of Alberta? Here we break down the different components of a kilowatt-hour in the ATCO Electric service area so that you can decide whether you're getting a good deal for your money

Are you moving in Alberta? Find out if your town is in the ATCO Electric service area

Breakdown of Costs for a Typical ATCO Electric RRO Bill

The Average Cost of Electricity for a Typical ATCO Electric RRO (DERS) Residential Customer

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Comparison of Annual Electricity Costs for a Typical RRO Residential Consumer, 2013

Source: Alberta Market Surveillance Administrator

In 2013, the total annual cost of electricity for a typical ATCO Electric residential customer purchasing RRO electricity from DERS was about $2025. When divided by the average annual consumption for the typical Albertan residential consumer (7200 kWh per year), this works out to roughly 28.1 ¢ per kWh for the average cost of electricity in the FortisAlberta service territory.

Breakdown of the Cost of a Kilowatt-Hour in the FortisAlberta Service area

 

Source: Alberta Market Surveillance Administrator

Energy supply costs make up about 32% of the total cost of a kWh for a typical residential RRO consumer in the ATCO Electric service territory. Other charges include the administration fees charged by your electricity retailer, the transmission and distribution fees charged by your wires services provider (ATCO Electric), the local access fees charged by the local municipality, rate riders, and GST. ATCO Electric distribution and transmission fees are the highest in all of Alberta (more than those for FortisAlberta, EPCOR in Edmonton or ENMAX in Calgary, reflecting the higher costs of providing service to a large and sparsely-populated service territory.

How Can I Save on My Electricity Bill if I live in the ATCO Electric service territory?

As the graph above illustrates, your the components of your electricity bill can be split into two main categories: the cost of your electricity and the cost of delivering it. In general, the charges related to electricity delivery cannot be altered, and will remain the same regardless of whether you change suppliers.

Should I Switch Suppliers?

Since 2001, Albertans have been able to choose their electricity retailer. Choosing your electricity retailer will change the electricity supply and administration components of your electricity bill. Competitive energy retailers offer both fixed and variable rates for electricity, which may work out to being cheaper than paying the default regulated rate option (RRO)for electricity. Competitive price companies also charge different administration fees, which depending on the company may be cheaper than those charged by DERS.

Saving Electricity to Save Money

Another highly effective way of reducing your electricity bill is to cut down on how much electricity you use altogether. As some (though not all) distribution and transmission charges are variable, reducing your overall electricity consumption will also allow you to trim down some of the "fixed" portion of your electricity bill.

Check out some of our tips for saving money on your electricity bills

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