Canadian Manufacturing

Consumer price cap on electricity still on after Alberta carbon tax unplugged

Part of the levy's revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour

June 3, 2019  The Canadian Press

MEDICINE HAT, Alta.—Alberta’s carbon tax has been cancelled, but a consumer price cap on electricity—which the levy pays for—will remain in place for the time being.

June electricity rates are due out on Monday, about four days after the new United Conservative government did away with the carbon charge on natural gas and vehicle fuel.


Related: Alberta set to pass law to kill provincial carbon tax, as federal tax looms


Part of the levy’s revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour.

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Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less.

If the actual market price rises above that, the difference is paid to generators directly from levy funds.

Alberta Energy says the price gap program will continue, at least for the time being.

“The cap remains in effect and we will be reviewing all the polices brought in by the previous government,” Samantha Peck from the minister’s office said Friday.

According to information filed with the Alberta Utilities Commission, only Epcor’s proposed price of 7.1-cents per kilowatt hour for June will be above the rate ceiling. (Medicine Hat News)