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With the end of Alberta's electricity payment deferrals, those on regulated power plans will see a rise in costs.
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Some Albertans may see a rise in their power bills this month. 

About 800,000 Albertans on a regulated rate option (RRO) for their electricity are expected to pay a bit more than usual. 

This rise comes from the end of a program from the provincial government which put a cap on power costs. The program capped charges at 13.5 cents per kilowatt hour for the first three months of the year.

According to Joel Macdonald, the founder of Energyrates.ca, the true cost of power was between 20 and 33 cents per kilowatt hour, and Albertans on an RRO are expected to pay back the difference.

"$221 is what would be outstanding per customer for those three months, and that money would be collected over a period of 21 months. That's about $10 a month as it stands right now."

There is a way to get out of paying back the difference, but it involves moving to either a fixed rate or calling a competitive retailer, both of which might not be possible for some people.

"To sign up for a competitive contract, you need to have a certain credit score," Macdonald said. "So, you could have Albertans who went through some financial hardships and don't have the highest credit score."

As people leave RROs in favour of those other options, the number of people left to pay off the difference will decrease, leaving those who are stuck with their RROs with higher costs than the initially expected $221. Considering people with low credit scores are essentially stuck with their RROs, the burden will lie with them. 

"I'm sure when the government first implemented the [deferral program], these were the people they were trying to help."

The NDP introduced a similar cap on gas costs when they were running the provincial government, but costs did not need to be paid back under their plan. 

"The old cap was a true hard cap, and it was funded by the carbon levy," Macdonald said. "Any costs above that consumers didn't have to pay."

"This new deferral program is basically an I.O.U."

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