To say that Alberta’s electricity bills are complicated would be an understatement. A new fee seems to pop up on every bill, the fees are not clearly explained and somehow the total bill amount always seems to go up. Rather than digging into every charge, we are going to focus on Alberta electricity delivery charges which consists of both a transmission charge and a distribution charge. In some areas of Alberta, these charges have risen by over 60% over the last 5 years.

Below shows how delivery charges are displayed on some common retailer bills:

Besides the energy charge on your bill, these delivery charges are most likely the next highest charge. Before we dig into who pays the most in delivery fees, there are 2 key points about delivery fees that must be understood:

1. Alberta electricity delivery charges are not fixed:

• Transmission fees cover the cost of moving electricity from power generation facilities to local distribution networks. Transmission lines span long distances and require continuous maintenance and upgrades. This fee is entirely variable which means that it is based on the amount of electricity your home uses ($/kWh).
• Distribution fees apply to delivering electricity from local substations to homes and businesses. They help cover the cost of power lines, transformers, and other distribution infrastructure. This fee is composed of a fixed per day charge as well as a variable charge.

2. Delivery fees are charged by your wire owner which depends on what area of the province you live in:

Since Alberta has a deregulated electricity market, the transmission and distribution lines are owned by four different companies. The territory that each operated in is shown below. EPCOR is the wire owner for Edmonton, ENMAX for Calgary while ATCO and FORTIS share the rest of Alberta.

What area of Alberta pays the most in electricity delivery fees?

The following shows the monthly delivery fees charged to an average sized home using 500 kWh per month in each of the four wire owner service areas in Alberta. This only applies to residential homes as commercial and industrial properties are charged differently.

EPCOR (Edmonton) – $48.67/month

EPCOR is responsible for the transmission and distribution of power to Edmonton. These homeowners pay the lowest electricity delivery charges in Alberta. Since 2020, total delivery fees in Edmonton have increased by 15%.

• A home that uses 500 kWh in a month currently pays $48.67 in delivery fees (lowest). $27.69 of which are variable fees tied to the homes electricity use. While the other $20.99 consists of a $0.70/day charge.
• In 2020, that same home would have paid $42.20 in delivery fees representing a 15% increase.
• A home that uses 1,000 kWh per month would currently pay $76.36 per month in delivery fees.

ENMAX (Calgary) – $50.44/month

ENMAX is responsible for the transmission and distribution of power to Calgary. Although these homeowners currently pay the second lowest electricity delivery charges in Alberta, the average Calgary home has seen a 63% increase in their delivery fees since 2020. This is by far the largest increase over that time period province wide.

• A home that uses 500 kWh in a month currently pays $50.44 in delivery fees (second lowest). $27.49 of which are variable fees tied to the homes electricity use. While the other $22.96 consists of a $0.76/day charge.
• In 2020, that same home would have paid $31.03 in delivery fees representing a 63% increase.
• A home that uses 1,000 kWh per month would currently pay $77.93 per month in delivery fees.

FORTIS (Rural & Southern AB) – $68.80/month

FORTIS is responsible for the transmission and distribution of power to southern Alberta including some rural areas. These homeowners pay the second highest electricity delivery charges in Alberta (behind ATCO). Since 2020, total delivery fees in these areas have increased by 23%.

• A home that uses 500 kWh in a month currently pays $68.80 in delivery fees (second highest). $38.39 of which are variable fees tied to the homes electricity use. While the other $30.41 consists of a $1.01/day charge.
• In 2020, that same home would have paid $55.88 in delivery fees representing a 23% increase.
• A home that uses 1,000 kWh per month would currently pay $107.19 per month in delivery fees.

ATCO (Rural & Northern AB) – $111.55/month!!!

FORTIS is responsible for the transmission and distribution of power to northern Alberta including some rural areas. These homeowners pay the highest electricity delivery charges in Alberta. Since 2020, total delivery fees in these areas have increased by 32%.

• A home that uses 500 kWh in a month currently pays $111.55 in delivery fees (highest). $68.85 of which are variable fees tied to the homes electricity use. While the other $42.70 consists of a $1.42/day charge.
• In 2020, that same home would have paid $82.89 in delivery fees representing a 32% increase.
• A home that uses 1,000 kWh per month would currently pay $180.40 per month in delivery fees.

How do I reduce my delivery fees?

As explained above, it is important to reiterate that most of these delivery charges are variable charges despite how they appear on your bill. This means that these charges rise and fall with your electricity use and are charged per kWh. The transmission charge is entirely variable while the the distribution charge is a combination of a variable charge and a fixed per-day charge. So, this means that the only way to reduce your delivery charges is to either use less electricity or install solar panels to lower these charges.

Will solar panels reduce my delivery fees?

Yes! Having solar panels will reduce the delivery fees on your electricity bill, especially in the summer when solar electricity production is high. Additionally, since Alberta has “Net Billing” and The Solar Club any credit generated by exporting solar electricity to the grid can be put towards the entire electricity bill, including delivery fees. So, delivery fees can be reduced or even eliminated with solar panels. This is unique to Alberta and is a main reason why solar panels are a rapidly growing industry here.

Always get 3 solar quotes!

If you plan on installing solar panels on your home, please be sure to get multiple quotes from reputable local companies. This is the only way to ensure you are getting a quality solar panel installation at a fair price.

You may also choose to use a broker, like Glean, to solicit multiple quotes on your behalf from vetted installers and provide unbiased advice so you can be sure you are making the right decision. To learn more about Glean or to request 3 solar quotes for your home click here!