With January’s highest monthly default natural gas rate reaching $6.446 per gigajoule, the natural gas rebate will not be triggered for January. However, the natural gas rebate program continues to offer price protection from volatile natural gas prices for Albertans as consumers around the world continue to see high prices.
A temporary price ceiling of 13.5 ¢/kWh is now in place to help reduce electricity costs for Albertans on the Regulated Rate Option (RRO) in January. The RRO price ceiling offers customers who are not on competitive contracts price stability throughout the winter months, when the weather is coldest and usage is at its highest.
This protection, combined with the expanded $75 electricity rebates arriving in January, provides added support for more than 1.9 million homes, families and small businesses.
How the Natural Gas Rebate works
Under the program, should the monthly default natural gas rate from any of the regulated utility providers (ATCO Gas North and ATCO Gas South, as served by Direct Energy Regulated Services or Apex Utilities) exceed $6.50 per gigajoule, the government will provide rebates to all eligible consumers covering the difference. For example, if the highest regulated rate is $7.50 per gigajoule, eligible consumers would get a rebate of $1 for every gigajoule used in that month.
Albertans using alternative heating fuels that are not connected to the natural gas distribution system will be able to apply for the rebate through an online application portal. Once the rebate is triggered, the online portal will be opened for customers using natural gas, propane, kerosene, or heating oil for heating purposes.
How the RRO price ceiling works
Consumers who purchase power through the RRO will receive a 13.5 ¢/kWh ceiling on what providers can charge them per kilowatt hour in January, February and March 2023.
Any costs above the temporary ceiling will be deferred and then spread out over a 21-month period from April 1, 2023 to December 31, 2024.
Alberta’s government is evaluating the RRO to ensure electricity is stable and affordable for Alberta families, farms and small businesses.
More details on energy affordability programs and other supports can be found at alberta.ca.
Quick facts
- In Alberta, the default regulated rates are set for the entire month and do not fluctuate. Rates are approved by the Alberta Utilities Commission and not determined by the government.
- Natural gas rebates will appear as an individual line item on the natural gas portion of the bill under “GOA Utility Commodity Rebate.”
- If the monthly default rate posted on alberta.ca is above $6.50 per gigajoule, eligible consumers will receive the rebate as a credit on their bill based on that month’s usage.
- If the monthly default rate posted on alberta.ca is at or below $6.50 per gigajoule, no rebate will be provided, and no line item will appear on that month’s bill.
- The exact timing for receiving rebates will vary by customer depending on their utility provider’s billing cycle.
- The rebate for petroleum-based heating fuels will be calculated in the same method as natural gas consumers, using a standardized equation to determine the consumption equivalency for the alternative fuel.
- The electricity rebate has been extended through the first four months of 2023 to provide even more support with high utility costs.
- Rate payers will receive two installments of $75, to be credited directly on their bills, for January and February consumption. This will be followed by a further $25 credit on bills for March and April consumption.
- Electricity rebates will appear as an individual line item on the natural gas portion of the bill under “GOA Utility Commodity Rebate.”
- The Government of Alberta will not send texts or emails about the rebate program and will not ask Albertans to submit personal information via text or email to receive rebates.
- Alberta’s government is taking additional action to keep life affordable for Albertans, including saving 13.6 c/litre on gas and diesel including GST, indexing personal income tax to inflation, and providing additional targeted relief payments for families, seniors and vulnerable Albertans.
- To learn more, visit alberta.ca/affordable.