Full Disclosure: NewGen Energy is the retail division of UTILITYnet, a local, independent energy company serving Alberta since 1978. As Albertans, we’ve lived through every phase of deregulation, are locally based, and know the market well.
At times, it feels as though Minister Neudorf is operating a utility complaints desk. We often hear from consumers who are “mad as hell” about all the extra charges on their energy bills, and rightfully so! You see, some retailers are actively misleading their customers.
At NewGen, we understand your frustration. Waiting for the government to fix the problem might take a while, so we’ve written this blog to help you make changes immediately.
You shouldn’t need a magnifying glass or a calculator to figure out your utility charges. Yet, many people find it hard to understand their bills because of complicated and confusing charges. High delivery and transmission charges are a problem, and while we feel improvements are needed, the real issue often lies with some competitive retailers who use underhanded billing methods.
It’s like playing Snakes and Ladders with hidden traps. You must be vigilant, have a calculator handy, and be ready to read the fine print. We asked Nathan Neudorf, Minister of Affordability and Utilities, to address these issues, and he assured us they are on his radar. In the meantime, while some practices are misleading, they’re still legal, so you need to stay informed.
The bottom line is that anything beyond your rate per kilowatt-hour or gigajoule (including transaction fees) and a monthly per-site admin fee is not standard practice and may be an “additional” or “hidden” fee. Be on the lookout for the following that can drive up the cost of your utilities:
- Daily fees (a per day charge that can be in addition to a monthly admin fee)
- Contract fees (a fee to sign a contract with a retailer)
- Service costs (another term for daily fees)
- Supplier surcharges (a cost to cover securities paid to AESO and distributors)
- Management fees (other terms for daily fees or contract fees)
- Early cancellation fees (a cost to cancel your contract early)
- Late payment charges (a charge for missed payments)
(Distribution and transmission charges/riders, Balancing Pool allocation, Local Access Fees, Municipal Franchise Fees, and the Carbon Tax remain the same regardless of which retailer you choose for any given site.)
Sometimes even the rate is “hidden”! Direct Energy, an American company retailing in Alberta, doesn’t always show the rate per kilowatt-hour or gigajoule on their invoices, making it hard to compare prices.
These hidden fees can significantly raise your bill. Do you know which ones show up on your bill?
We have advocated for the Utilities Consumer Advocate (UCA) to set and enforce standards to protect consumers. Misleading practices need to stop. While we wait for the UCA to step up consumer education, it falls to you to know what’s on your bill.
The market is changing. Remember, competition lowers prices, not government rules. We need to get rid of hidden fees. The good news is that you can control this part.
Let us help you understand your utility bill. Send your bill to [email protected] and we will share the results to help others, too.
With NewGen Energy, what you see is what you get.