Alberta's Affordability Action Plan
February 5th, 2023
Posted in: Tips & Insights
Starting January 18, 2023, Alberta’s government allocated $2.8 billion to give money directly to specific groups of Albertans, and to reduce energy costs for most Albertans. Announcements like this can be highly detailed and challenging to sift through—here's what you need to know, starting with a short video on how to apply.
Seniors – 65 And Older
Seniors who are 65 and older can apply to get $600 total.
Assured Income for the Severely Handicapped (AISH) recipients, Persons with Developmental Disabilities (PDD) recipients, and Income Support clients will get $600 total without needing to apply.
Families With Children Under 18
Families with children under 18 can apply to receive $600 per child total.
Energy Affordability Programs
Fuel Tax Relief
The provincial fuel tax has been suspended from January 1 to June 30, 2023. This removes 13 cents per litre of tax for gasoline and diesel, and four cents per litre for marked gasoline and diesel. It’s important to note, however, that this price reduction may not be seen at the pumps, since gas pricing is complex.
Per the Calgary Herald, “[F]actors including crude pricing, refinery margins and retail margins also affect prices.”
Via the Alberta government website:
“How it works
From January 1 to June 30, 2023, the entire fuel tax will be lifted so drivers save:
13 cents per litre on gasoline and diesel
4 cents per litre on marked gasoline and diesel
After June 2023, the fuel tax relief program will be reviewed every quarter based on the average price of West Texas Intermediate (WTI).”
Albertans will automatically receive electricity price rebates on their bills until April, 2023, again, as per the Alberta government website:
“Monthly rebates will be applied directly to eligible electricity bills, for a total of $500.
$50 rebates on power bills from July to December 2022
$75 rebates on power bills in January and February 2023
$25 rebates on power bills in March and April 2023
Rebates will be applied each month and will appear as a credit on your bill listed under the "GOA Utility Commodity Rebate"
Eligible consumers will automatically receive the rebate no application or action is required."
Natural Gas Rebates
If the price of natural gas goes over $6.50 per gigajoule, Albertans will automatically receive a rebate for the price over $6.50 per gigajoule. For example, if a household uses 20 gigajoules of natural gas that month, and the price is $7.50 per gigajoule, they would receive a $20 rebate on their natural gas bill. The plan was due to end in March, 2023, but it has been extended. Details will be announced once regulations are tabled.
Once more, per the Alberta government website,
“How it works
Rebates will be applied directly to all eligible consumers' utility bill if the regulated monthly natural gas rate charged by any one of Alberta's 3 regulated utility providers is above $6.50 per gigajoule.
Each month we will post the highest price default natural gas rate (the Alberta price) from the 3 regulated utility providers (ATCO North, ATCO South, and APEX Utilities).
If the published Alberta price is above $6.50 per gigajoule, rebates will cover the difference between $6.50 per gigajoule and the regulated rate that calendar month. For example, if the Alberta price is $7.50, eligible consumers would get a rebate on their bill covering $1 for every gigajoule used.”
As of this writing, the price of natural gas is $6.14.
Contact Shaw & Associates Chartered Accountants for accounting help you can count on. One complimentary meeting with us will put you and your business on a more profitable and positive path.