The Regulated Rate Option has been confirmed at 31.8 cents per kilowatt hour for Calgary — the first time the rate has cracked the 30-cent barrier. It’s a jump from 27.5 cents in July, previously the record high. Compared to customers on a fixed rate, they will be paying between $125 and $150 extra on their energy bill.Meaghon Reid, executive director of Vibrant Communities Calgary , said this will push even more people to the margins.
“This RRO increase is affecting primarily people who can least afford to shoulder that additional cost,” she said. “We know that energy poverty affects about one-in-five residents in Alberta, and that means that you’re making some fairly significant tradeoffs to be able to pay your electricity bills.”
RRO customers have for weeks been encouraged to switch to a lower fixed rate — currently between 12 and 14c/kWh — by government officials and energy companies. It is a free process customers are able to do without cost or penalty. However, Reid says for many it is not that simple. Fixed-rate contracts often require a high credit rating that many of those severely impacted do not have.This rate hike is on top of a red-hot rental and real estate market that continues to push higher the cost of housing while other necessities like foodVCC is calling for a policy change to allow people with bad or no credit to access fixed rates.
The rise in energy rates has been steep. Prior to July 2021, a kilowatt price above 10 cents on RRO was almost unheard of. In December 2022, the rate broke through 20 cents for the first time. August will be a new level altogether.Sign up to receive daily headline news from the Calgary Herald, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.