New Regulations on High Local Access Fees

Introduction to Local Access Fees

Local Access Fees have been a significant component of the monthly energy charges for Alberta residents. These fees are charged by local municipalities through electricity distributors for the right to have utility lines, pipes, and other infrastructure on municipal property. The charges, determined by the local municipality, are not retained by Electricity Retailers/Partners such as Activate Energy. We are required to collect these charges on the monthly bill and then send that money to the local Distribution company.

Government Changes

The Alberta government is finally addressing the issue of high local access fees. For many residents, these fees have been a burden, adding considerable amounts to their monthly energy bills. The government's intervention aims to provide relief to consumers by regulating and potentially reducing these charges. This move is expected to bring more transparency and fairness to the way local access fees are applied.

The rates for local access fees vary significantly across different municipalities. They are applied based on the distribution charges and can range from 0% to as high as Calgary's rate of 11.11%. Additionally, another 11.11% rate is applied to the Regulated Rate Option (RRO) multiplied by the individual’s consumption. This variation in rates has led to a lack of uniformity and predictability in monthly energy costs for consumers.

Impact on Consumers

For many residents, the high local access fees have been a source of frustration, especially as these charges are often not clearly communicated or understood. The government's crackdown is expected to alleviate some of this frustration by ensuring that fees are more consistent and justifiable. Consumers can anticipate more manageable and predictable energy bills as a result of this regulatory action.

The Alberta government's decision to address high local access fees is a welcome development for many residents. By regulating these charges, the government aims to create a fairer and more transparent system for all. This action not only benefits consumers by potentially lowering their monthly energy bills but also fosters greater trust and accountability within the energy distribution framework.

More details: Alberta Government Notice