and next up on the docket is how to lower your monthly electric and gas bills. So, without further ado, Kasia – take it away!<\/span><\/p>\n

Have you ever considered the expense that is your monthly gas and\/or electricity bill and wondered whether, short of wearing every single sweater and pair of socks you own while turning off your thermostat, there could be a way to lower the cost?<\/span><\/p>\n

The reality is most people will pay their utility bill no matter the cost before they pay their mortgage. It\u2019s simply a bill we all pay habitually month in and month out without (most people) giving it a second thought.<\/span><\/p>\n

But you\u2019ll be happy to know there is, in fact, a way to pay less every single month.<\/span><\/p>\n

Thanks to the Government of Alberta and energy deregulation, we now have a competitive utility market. This means each Albertan now has a choice which energy retailer to purchase gas and\/or electricity from.<\/span><\/p>\n

In the same way we get to choose where we purchase our groceries every month, we can also choose who to purchase our gas and\/or electricity from every single month as well.<\/span><\/p>\n

Note: not all Provinces in Canada have deregulated utility markets and some only deregulate either gas or electricity rather than both.<\/em><\/span><\/p>\n

Notice I mentioned \u201cpurchase\u201d. This is because (if you\u2019ve also noticed) there are always two companies listed on your gas and electricity bill. One of them is who you purchase your gas and electricity from (your retailer) and the other, is who you pay to deliver that gas and electricity to you (your delivery company). Your retailer is essentially who you are \u201cwith\u201d.<\/span><\/p>\n

Which brings me to a short explanation of delivery companies – and their fees.<\/span><\/p>\n

In Alberta, there are a handful of delivery companies and each is responsible for a specific territory. If you live in territory X, no matter which retailer you choose to purchase your gas and\/or electricity from, that specific delivery company will always deliver your gas and\/or electricity to you. This also means that no matter who you \u201cswitch to\u201d on the retail side, those delivery fees will never change. The only way to switch delivery companies \u2013 and pay different (note I said different \u2013 not necessarily lower) fees, is to move to territory Y.<\/span><\/p>\n

Now you\u2019re probably thinking \u2013 but I hate delivery fees! I use (or buy) no gas all summer and yet they are through the roof!<\/span><\/p>\n

Agreed. They are at best, a total annoyance, but those fees are mandated by the Alberta Utilities Commission. Every year, your delivery company creates a report and part of that report is a suggestion of fees they need to charge. This suggestion is based on their expenses, the number of power lines or gas lines in their territory, and their number of customers. They then submit this report to the Alberta Utilities Commission for review and approval. The Commission then holds a public hearing, reviews the report, and approves the fees that are to be charged each customer going forward. Those fees are expressed as a $ amount per GJ and\/or KWh used\/purchased. Your delivery company then looks at your meter reading, determines your consumption, multiplies it by the fee in each fee category, adds in appropriate taxes and the total becomes your delivery fee payable amount on your bill.<\/span><\/p>\n

With me so far?<\/span><\/p>\n

To summarize, delivery fees are something you must pay for and therefore, not an area of your bill that you can save on (unless you lower your consumption and love wearing your entire wardrobe on your back \u2013 or go completely off-grid – that is J).<\/span><\/p>\n

So where can you save?<\/span><\/p>\n

On the retail portion of your bill.<\/span><\/p>\n

As mentioned above, a utility retailer sells gas and\/or electricity to you based on your consumption. They know how much you need to purchase (or conversely how much they need to sell you) based on the reading on your meter. The reading on your meter is provided to them by the delivery company. The rate they charge you per GJ or KWh used is based on their cost + profit to purchase gas or electricity on the wholesale market. They then multiply that rate by your consumption based on your meter reading, add in an administration fee for the invoicing they do(based on my experience and the hundreds of bills I have looked at anything over $5 is too much), add on the GST and this becomes your total owing for your consumption.<\/span><\/p>\n

Simple right?<\/span><\/p>\n

You would think, but not so quick.<\/span><\/p>\n

Some companies, in order to increase their profits even more, also add a separate line item to the retail part of the invoice called a \u201ctransaction\u201d fee.<\/span><\/p>\n

This transaction fee is a $ amount per GJ and\/or per KWh that is added on top of your rate. It is usually $0.49 per GJ or $0.99 per GJ or $1.00 per GJ and\/or $0.01 per KWh used.<\/span><\/p>\n

This means that if your gas rate is listed as $1.80 per GJ on your bill and there is a \u201ctransaction fee\u201d line item on your bill somewhere of $1.00 per GJ then your rate effectively is $2.80 per GJ and not $1.80 per GJ as the company would like to have you believe.<\/span><\/p>\n

What is more unfortunate in this case, is that when you call the said retailer and ask what their current rate on offer is, they will always quote the rate only and never mention the transaction fee. Not unless you specifically ask \u2013 and know to ask. It\u2019s a little (a lot) sneaky if you ask me as it gives a false impression of what you are being charged for your usage.<\/span><\/p>\n

So now that we\u2019ve covered delivery fees, retail rates, transaction fees, and admin fees, we can put a savings action plan together in the following way:<\/span><\/p>\n

Delivery fees<\/span><\/p>\n