Whether you are opening your first business, or expanding your existing operations, moving to a new site requires good planning. If you need to set up utilities at your new space, these tips will help you avoid unexpected costs.
Questions to Ask
What kind of business has used this space previously?
- If your energy needs are lower than the previous tenant’s, the site’s electricity service may be oversized for your business and result in higher costs. If your company grows, it is important to make sure the new location’s energy service can support this growth.
What is the electrical panel size (i.e., 100-amp service, 200-amp service or higher)?
- It is important that the new location’s energy service can support your business needs. Make sure it is the right size for your business and can supply enough power required by your appliances and equipment.
What is the current rate class of the site?
- Your utility rate will depend on your business site rate class assigned by your utility distributor. For example, commercial operations like professional offices, retail establishments, institutional facilities, and restaurants may use small general service or small commercial rates. Auto mechanic shops, dry cleaners, and cabinet makers may use medium or large commercial rates. Each rate class may be further subdivided into different categories based on the amount of power the customers use. To find out your new site's rate class, you can ask your leasing agent or call the distribution company.
What type of meter is used?
- The type of meter at a property determines the rates charged by your retailer. If you have a demand meter, your utility bill will be higher because of demand charges.
What is the distributor for the area?
- If your business moves to a different city or town or relocates from an urban location to a rural area you may be able to keep your current rate plan with your utility retailer. However, you might see your utility delivery costs increase or decrease because another distribution company serves your new site.
What are my utility responsibilities?
- Confirm with your landlord or leasing agent if your lease includes any utility services. Keep in mind some landlords require proof that you have set up your utilities before they let you move in.
Before You Move In
If you are moving your business to the new location, you may be able to transfer services from one billing address to another. Your new site may have utility services already, so getting a service set up could only take a phone call to the utility company.
If you need to set up services, you have options when buying electricity and natural gas:
Regulated Rates
- The Rate of Last Resort (RoLR) for electricity
- The Default Rate Tariff (DRT) for natural gas
Competitive Rates
- Variable Rate
- Fixed Rate
The regulated retailer in your area can set up service for you right away or even backdate if required.
Competitive retailers, where you can choose your rate type (fixed or variable) and contract length (1-5 years), can take 10-90 days to set up services in your name.
Most competitive companies will also need a credit check before setting up the service. If the competitive company cannot set up services before you move into your new business site, you set up regulated services until your contract becomes active. You can cancel your regulated service without penalty as soon as your contract is in effect.
Additional Fees
The retailer may request a deposit or connection fee to set up your utilities. When setting up services, ask if you need to pay these fees before the service is delivered or if they will be charged on your first statement. Be sure to ask your retailer if it is possible to avoid these fees. Some companies will waive deposits for customers on the Authorized Payment Withdrawal plan.
After You Move In
Your First Bill
Check with your retailer about how you will receive your first bill. Some retailers use paper billing, while others are completely electronic. It’s a good idea to confirm when you will receive your bills and what your billing cycle will be. The account holder is responsible for all charges, even if they do not receive a bill.
If you are moving and responsible for two sites at the same time – even for a short period – tell your retailer that there will be an overlap in billing. When you receive your statements for the two properties, they will likely be larger than your usual monthly bills.
Paying your bill is important! If you do not pay your bills, your services may be disconnected.
How We Can Help
The Utilities Consumer Advocate’s mediation officers can share advice on comparing utility rates, as well as provide information on utility issues and help settle disputes with your provider. Contact us toll-free at 310-4822, email at ucahelps@gov.ab.ca, or visit the Contact a Mediation Officer page for more information.