Regulated Rates versus
ATCOenergy’s Variable Price.
What Are Regulated Rates?
Regulated Rates are those that must be offered by the distribution companies for electricity or natural gas as a default for those customers who have not chosen a competitive retailer. The rates fluctuate every month.
These Regulated Rates for energy are set using a methodology approved by the government. This methodology sets the price for the month in the preceding month (e.g., the February price is set in January). A number of factors can be used to establish the price, which could include:
• A forecast of market price in the coming month;
• The number of customers expected to be served;
• The cost to acquire the energy;
• Estimates of those customers’ energy use; and
• The cost of any existing inventory of energy.
A benefit of this approach for consumers is the knowledge of how much every unit of energy use is going to cost for that particular month. However, a major drawback is the reliance on the accuracy of forecasts to set the appropriate price for that period.
How Do ATCOenergy’s Variable Price Offers Differ?
ATCOenergy has a Variable Price that fluctuates every month, similar to the Regulated Rates. But that is where the similarities end.
Our Variable Price is based on the actual market price of energy plus a Service Fee. Effectively, that real cost of energy will flow through to you every month in the "market" component of your price. Rather than using forecasts or excess inventory of energy to set your price, the real cost of energy is what your price is based on.
What Are My Choices?
We offer both a Guaranteed Price as well as a Variable Price. For those customers who want stability in the price they pay, our Guaranteed Price options provide a simple all-in-one price that is applied to every unit of energy used for the duration of your plan.
Whether you want predictability or variability, we have a price option to suit you. And we give you the option to add 25% or 100% Green power to your electricity plan. The choice is yours. As a consumer, you have a choice of retailer. And ATCOenergy gives you a choice of Guaranteed or Variable Price. Now that’s positive energy!