Choosing an electric company can feel like an endless process. All of the questions that come up can feel overwhelming and leave you feeling stressed. Whether you are moving homes, starting a business or wanting to find the best deal you can when it comes to your electricity options, knowing what you are searching for is going to help you make the best decision for your family.
We are going to give you a comprehensive breakdown of a few different electricity companies that are in Alberta and compare them for you. To truly understand the differences between each electric company, we are going to discuss some important information when it comes to energy for your home or your business.
UNDERSTANDING PIECES OF YOUR ELECTRICITY BILL
Looking at your bill can instantly want you to rip it to shreds. We are going to break down what everything means on your bill so that you can easily understand what they are showing you when it comes to your electricity consumption and the company that you chose.
1| The name on the top. That is your retailer. Whether that is Enmax, Olympus Energy or another company that you chose. The retailer buys the electricity and sells it to you, the customer. Your retailer is also who you pay fees to and who manages your account.
2| Your bill. The bill that you receive comes from your retailer. Your bill will also include the delivery charges which come directly from the distributor not from the retailer.
3| kWh. This is the kilowatt-hour, the measurement in which electricity is measured. For example, a 100W lightbulb will use 1kWh if it is on for 10 hours.
4| The rate. This is the rate that you are paying your retailer for the electricity.
5| Site ID and meter number. These two numbers identify the meter that is on your house. The site ID can be your address or the location of your meter while the meter number is directly on your meter.
6| Meter readings. When it comes to your meter readings, they will either be estimated or actual. An actual meter reading is one that is taken directly from your meter. An estimated meter reading is done by the distributor and is based on past readings.
7| Charges to buy electricity from. These are the charges from your retailer for how much electricity you have used per month.
8| Charges to deliver electricity from. These charges are from the delivery of the electricity that is sent to your home, not your usage. These are from the distributor and not the retailer.
9| Local access fees. Your distributor is charged a fee from the municipality to be able to provide you with electricity. This fee is shared by all consumers.
10| Balancing pool rider. The Balancing Pool forecasts if it will have a surplus or a shortfall. You will either be given a credit or a charge on this section of the bill. Normally it will be a credit.
11| Rider. Can be a charge or a credit to your bill that adjusts your distributor charges. You may have more than one rider on your bill.
FIXED-RATE VS VARIABLE RATE FOR ELECTRICITY
Before we break down a few of the electricity companies in Alberta, we are going to talk about fixed rate versus variable rate. These numbers will be included in the breakdown so to understand what they mean, we will explain them.
Fixed-rate means that you lock in a rate for a period of time. Most of the electric companies in Alberta offer 1 year, 3 years and 5 years locked-in rates. As you will see below, there can be a difference in rates depending on how long you want to lock in for.
Choosing a fixed rate means that you are going to protect your monthly bill from market volatility and reduce your risk of price fluctuations.
A fixed-rate is beneficial for those do not want to see fluctuations in their monthly bill.
A variable-rate means that your rate will change from month to month depending on the market. This option is not ideal for those who need to have a predictable budget for their electricity costs. You will see a breakdown of prices underneath the Enmax breakdown. This can also be called a floater rate.
A variable rate is beneficial for homes and businesses that are seeking the lowest rate and are able to handle market fluctuations in their monthly bill. On average, you are still saving more.
A COMPARISON OF FOUR ELECTRIC COMPANIES IN ALBERTA
Now that we covered terminology that electric companies use on their bills and even on their websites, we are going to break down four electric companies that are available in Alberta. Three of these companies are big and one of these companies is a small energy company.
Currently, in Alberta, there are about 30 energy retailers in the province. In this section, we are going to compare the electric companies Enmax, Direct Energy, Atco and Olympus Energy.
ENMAX
Enmax is owned by the City of Calgary and has been providing service to the Calgary area since 1905. It has also been producing its own energy for almost 110 years. This means that Enmax is both the supplier and the distributor of energy.
Enmax offers fixed and floating rates for their customers.
Their fixed rates are as follows…
8.39 cents for 1 year
7.99 cents for 3 years
6.89 cents for 5 years
Their floating rates varied from December 2019 to November 2021 between 7.3 cents and 12 cents. The rates as of this blog post are 1 cent and wholesale price.
Enmax offers a program called My Energy IQ. With this program, you will be able to…
- Compare similar homes electricity usage
- Cost and usage charts
- Impact of weather on your usage
- Energy-saving tips
- Bill comparison
- What uses the most energy in your home
You can also get a referral bonus from using and recommending Enmax as your electricity provider. Refer friends and family and you’ll both receive $50 once they sign up.
Their cancellation policy is pretty straightforward. There is no cancellation fee but you do need to give 30 days notice.
DIRECT ENERGY
Direct Energy was founded in Toronto in 1986. They also offer fixed and variable options when it comes to electricity service. Direct Energy is a supplier only. Direct Energy in alberta is a retailer of energy AND a distributor of gas
Their fixed rates are as follows…
7.39 cents for 1 year
7.39 cents for 3 years
7.39 cents for 5 years
Unlike Enmax, there is no incentive to sign a longer contract with them to save money when it comes to their fixed rates.
Their variable plan is called the Super Flex Electricity Plan. The information that is shared is that it is the current market price plus 1.50 cents per kWh.
Their cancellation policy is pretty straightforward. There is no cancellation fee but they do need 30 days notice.
ATCO
Atco is a publicly-traded company based in Calgary, Alberta. Atco was founded in 1947 but they didn’t get into the electricity industry until the 1980s. Atco is a supplier and distributor of energy, just like Enmax is.
They offer two options which they call Guaranteed Rate and the ATCO Advantage Rate.
Their Guaranteed Rate (their version of a fixed rate) is as follows…
7.79 cents for 1 year
7.69 cents for 2 years
7.39 cents for 3 years
Each of these also includes a $6.99 per service per month fee on top of the guaranteed rate.
Their version of the variable rate is called the ATCO Advantage rate. The information that is shared is the wholesale market price plus 59 cents per service, per day.
Their cancellation policy is straightforward. There is no cancellation fee but they do need 15 days notice to cancel your service.
OLYMPUS ENERGY
We are going to cover a smaller, Alberta-owned electricity company, our very own!. Olympus Energy is proud to be 100% Albertan-owned. If you are looking to support local and small, Olympus Energy is the electricity company that you want to support. By using Olympus as your electric company, you are keeping money in the Alberta economy.
At Olympus Energy, you do not have to worry about signing a contract to get the best deal around. We offer one main option (their floater rate) with a second option, brokering, for larger businesses who want to get the best deal around.
Our floater rates mean that you are averaging a price for electricity of 4.99 cents per kWh for five years. This price beats any of the above electricity companies.
Olympus Energy we also offer…
No extra fees.
No contracts to receive a better price.
They guarantee the lowest variable rate that is offered.
No sign-up fees.
Our cancellation policy is straightforward and the best one compared to the other companies mentioned. There is no cancellation fee and we only require ONLY ten days notice.
If you are ready to sign up with us at Olympus Energy, you can fill out the application form on our website. We will ask for basic information and then you will receive an email to send in banking information to get you signed up, we’ve done our best to make it easy.
We understand that for each individual the decision of choosing an electric company for your home or business will come down to many factors but pricing is the main one for many people. It is our hope that knowing what these different pieces mean when it comes to electricity, that will help you make a decision when choosing the electricity provider that will work best within your budget and every other factor that is important to you.