The Alberta government is stepping in to stop Calgary residents from being forced to pay hefty surcharges on their power bills. Utilities Minister Nathan Neudorf is sworn into cabinet in Edmonton, Friday, June 9, 2023. THE CANADIAN PRESS
In Edmonton, the Alberta government aims to shield Calgary residents from excessive surcharges on their power bills. Utilities Minister Nathan Neudorf introduced a bill to prohibit variable rates for local access fees, which Calgary has exploited, resulting in an unexpected $186 million surplus last year.
Neudorf labeled this surplus as a "slush fund" and emphasized the need for immediate relief for Calgarians. Despite Calgary's plans to adjust fee calculations by 2027, Neudorf asserts that action is needed sooner to prevent similar practices by other municipalities.
Mayor Jyoti Gondek expressed disappointment with the bill, noting ongoing efforts by the city to address the issue, constrained by the Alberta Utilities Commission's oversight. The government's initiative follows delays in implementing promised tax cuts, with Premier Danielle Smith affirming a commitment to the planned timeline. However, opposition critics argue that the proposed legislation is overdue and may not effectively assist residents on fixed rates.
The bill also mandates a name change for the Regulated Rate Option to the Rate of Last Resort, aligning with a recent government rebranding effort to discourage volatile monthly rate sign-ups. While the bill doesn't stipulate specific consumer charges, it requires municipalities to justify fees and obtain approval from the Alberta Utilities Commission.
