Swann introduces Motion 502 to save Albertans money on electricity bills

Today, Alberta Liberal Leader David Swann will introduce Motion 502, which is aimed at providing Albertans with significant savings in electricity costs by modifying how the Regulated Rate Option (RRO) is calculated.

“I want to ensure that the default option for electricity is affordable, protects consumers, encourages industry participation and reinforces proper market functioning,” said Swann. “Motion 502 is an evidence-based solution that strikes the right balance and provides saving for the majority of Albertans on their power bills.”

Currently, the RRO is calculated based on a process called “forward pricing.” Electricity providers buy power in advance and retailers bid on it. Retailers then sell this electricity to consumers. Often, the forward price is higher than the actual price of power during the month it is used.

Changing how the rate is calculated to reflect the cost of electricity at the time of consumption results in an overall lower price and significant savings for Albertans.

Motion 502 will be debated in the Assembly this afternoon at 5 p.m.

Detailed information on the motion can be found here.