Understanding Your Bill

An important element of Alberta’s deregulated electricity marketplace is the freedom for customers to choose the energy provider and products that best suit their needs. The key to making informed decisions in Alberta's energy marketplace is knowledge. Here’s a look at the components of a typical residential Alberta electricity bill and what consumers should know about them.

Two main charges make up your utility bill: the cost of energy consumed and the cost of delivering this energy. Your energy charge is based on how much of the actual commodity is used. For the most part, delivery charges are fixed and are intended to cover the cost of installing, operating and maintaining the infrastructure used to transmit the energy to each consumer's residence. This infrastructure includes the poles, wires and transformers in the case of electricity.

Delivery company rates are regulated by the Alberta utilities Commission (AUC), an independent, quasi-judicial agency associated with Alberta Energy. The AUC holds rate hearings to ensure that customers receive safe and reliable service at a reasonable cost.

This example identifies the various line items and charges the average consumer may find on an electricity bill. Click on the blue words for a definition of each term.