The Alberta government is taking action to stop hefty surcharges on power bills in Calgary. Utilities Minister Nathan Neudorf has introduced a bill that would prohibit cities from charging variable local access fees, starting in 2024.
Local access fees are typically charged to power companies instead of property taxes. However, Calgary’s fees fluctuate with the price of electricity, while other municipalities have fixed rates or different formulas. This has resulted in Calgary collecting $186 million more than anticipated from the fees in the past year, leading to an average surcharge of $240 for residents—three times the fee paid by Edmonton residents.
Calgary city council has already agreed to revise its fee calculation method to reduce costs, but this change is not expected until 2027 at the earliest. Neudorf emphasizes the need for immediate relief for Calgarians and states that the legislation will also prevent other municipalities from adopting similar variable fee structures.
