Understanding utility bills

How to read electricity and natural gas bills

It is always a good idea to check utility bills on a regular basis, even if automatic withdrawal is enabled to ensure charges are accurate. 

Please click on the image to learn about various line items and charges on electricity or natural gas bills.


Retailer
 The retailer buys electricity or natural gas on the market to sell to the consumer. The retailer also issues bills and manages accounts.
There are two kinds of retailers. Default retailers set their rate using a formula approved by the Alberta Utilities Commission. Competitive retailers set their rate independently. Consumers can choose their retailer.
kWh
Kilowatt hour is the standard measure for electricity use— one kilowatt of electricity in use for one hour. For example, a 100W light bulb uses 1 kWh if it’s on for 10 hours.
GJ
Gigajoule is a standard measure of energy use. An average family uses roughly 120 GJ of energy in natural gas in a year.
Rate
 The rate is how much consumers pay their retailer per kWh or GJ for electricity or natural gas used, shown in cents or dollars.
Bill
 The bill comes from the retailer, but it includes the delivery charges as well. The delivery charges on utility bills come from the distributor, not from the retailer.

Who to call with questions
 Call the retailer if you have questions about your bill. Call the distributor if there is an outage or emergency. Phone numbers for both companies are on the utility bill.
Meter readings
Meter readings are either actual or estimated. An actual meter reading is taken from the meter at the property or site. If distributors don’t get an actual reading, they estimate the reading, based on past use and number of days in the period. For gas, the estimate also considers temperature during the period.
Site ID and meter number
 These two numbers identify the meter at the property. Site ID is like the address or location of the meter, and the meter number is on the meter itself.
Multiplier
 To convert the meter reading into kWh, multiply the reading by the multiplier. If the multiplier is 1, the reading is already in kWh.
Conversion factor
A gas meter measures volume. The conversion factor converts volume into the units of energy, or GJ, used to calculate your charges.
Charges to buy electricity or gas
 These are charges from the retailer for the amount of electricity or natural gas used. These charges are the rate multiplied by number of kWh or GJ consumed.
Charges to buy electricity or gas
 These are charges from the retailer for the amount of electricity or natural gas used. These charges are the rate multiplied by number of kWh or GJ consumed.
Administration fee
The retailer charges this fee to cover billing costs and customer care.
Federal Carbon Tax
The federal government applies a levy to fossil fuels based on how much carbon dioxide they release when burned. The Federal Carbon Tax is the rate multiplied by number of GJ you use. Learn more.
Charges to deliver electricity or gas
 These charges are not for the electricity or natural gas itself, but for delivery from the source to the property. They are charges from the distributor and are sometimes separated into transmission and distribution.
Transmission: Transmitting electricity or moving gas over long distances from the source to the local area.
Distribution: Transmitting electricity or moving gas within your area, usually within the city or town.
Charges to deliver electricity or gas
 These charges are not for the electricity or natural gas itself, but for delivery from the source to the property. They are charges from the distributor and are sometimes separated into transmission and distribution.
Transmission: Transmitting electricity or moving gas over long distances from the source to the local area.
Distribution: Transmitting electricity or moving gas within your area, usually within the city or town.
Local access fee and Municipal franchise fee
 The distributor pays a fee to the local government to use municipal land for power lines and substations or gas pipelines and infrastructure. The fee also gives the distributor the right to provide electricity or gas to the community and covers municipal taxes on property and land. The fee is shared by all consumers in the area. Each local government sets the fee based on provincial law.
Local access fee and Municipal franchise fee
The distributor pays a fee to the local government to use municipal land for power lines and substations or gas pipelines and infrastructure. The fee also gives the distributor the right to provide electricity or gas to the community and covers municipal taxes on property and land. The fee is shared by all consumers in the area. Each local government sets the fee based on provincial law.
Rider
A rider is a charge or a credit that adjusts the distributor charges. Riders exist for various reasons. They cover changes in circumstances since the Alberta Utilities Commission (AUC) last approved the distributor’s charges. They are also AUC- approved. Consumers may have more than one rider on their bill at a time. 
Balancing Pool rider
The Balancing Pool forecasts whether its assets will have a surplus or shortfall. Alberta’s electricity consumers share this surplus or shortfall as a credit or charge on their bills, usually as a credit.
Distributor
The distributor delivers electricity or gas to customers, answers emergency calls, and does meter readings.

A short video guide to understanding utility bills



 

Charges on electricity and natural gas bills

Two main charges make up utility bills:

  • The cost of energy consumed
  • The cost of delivering this energy

Energy charges are based on how much electricity and natural gas was consumed during the billing period, while the cost of delivering the energy is largely fixed.

Delivery charges cover the cost of installing, operating, and maintaining the infrastructure that's used to transmit energy to homes, small businesses, and farms. For electricity, this infrastructure includes poles, wires and transformers. For natural gas, infrastructure includes pipes and compressor stations.

Delivery company rates are regulated by the Alberta Utilities Commission (AUC). The AUC holds rate hearings to ensure that consumers receive safe and reliable services at a reasonable cost.

According to Section 4 of the Natural Gas Billing Regulation and Section 4 of the Billing Regulation (electricity), an electricity or natural gas bill must show all credits or charges as separate line items.

Bill corrections

When there are errors in billing, retailers may need to issue a bill correction (sometimes called a cancel rebill).

A corrected bill displays all the original charges that were cancelled and the newly created charges. This means that these bills are often multiple pages long.

A corrected bill can occur for many reasons such as previous bills using estimated consumption, incorrect line items, and incorrect meter readings. This may result in a charge or a debit. If consumers need assistance paying a corrected bill, they can reach out to the retailer to make a payment arrangement.

Bill concerns

Retailers are the first point of contact if consumers receive incorrect bills. The contact information can be found on the utility bill. 




The UCA is here to help

Contact the UCA toll-free at 310-4822 (in Alberta), at 1-888-644-6608 (outside Alberta), send an email to ucahelps@gov.ab.ca, or use the contact form.