Dan Brownsberger, manager, community development, right, with Sponsor Energy delivered a remote presentation on electricity and natural gas rates during the Rotary Club of Lloydminster lunch on Monday. Geoff Lee Meridian Source
Now would be a good time for low-income Albertans and charities who are on the regulated rate option (RRO) for electricity to jump ship—if they are able to.
That’s the advice of Dan Brownsberger, manager, community development, from Sponsor Energy, a Calgary-based retailer of electricity and natural gas.
He spoke about fixed, variable and RRO electricity options in a remote presentation as a Rotary Club of Lloydminster lunch speaker on Monday.
“Right now, the RRO is probably not a good place to be,” said Brownsberger as electricity and natural gas market prices tend to spike due to winter temperatures and increased consumption.
However, deposits, credit checks and the need to pay prior balances make it difficult for low-income people to get off the RRO and into a lower fixed rate.
“If you want to get off the RRO on a fixed price contract, you have to put down a deposit up to $500 in some cases,” said Brownsberger.
“We think that’s pretty punitive because these are the people who should not be on an RRO at 35 cents a kilowatt-hour (kWh).”
Brownsberger says these people need a fixed rate; they can’t get off; they’re stuck.
“So what we’ve done is offer a low creditor, no deposit program, so we will get you on a fixed rate; it’s a little higher than our normal rate, but at least you’re off the RRO,” he said.
He says that gives low-income people or seniors the chance to get on a fixed rate with Sponsor Energy without having to pay that deposit.
Brownsberger was introduced by Charlene Rowein, chief operating officer of Lloydminster Interval Home, who learned Sponsor has about 50 charities and non-profits as customers.
“We are a socially conscious energy provider that believes in making a difference in the communities we serve,” said Brownsberger who noted Sponsor dates back to 2012.
“It started as a social enterprise and we supply electricity and natural gas all over Alberta except Medicine Hat and some extremely rural areas,” he said.
Sponsor does everything from power small apartments to large industrial sites and everything in between.
Brownsberger has worked in the energy business for more than 25 years and at Sponsor for more than 10 years covering commercial sales, customer service and social media roles.
The energy veteran says if you’re on RRO, you’ve seen electricity prices go from 7 cents/kWh to 34 cents/kWh in 2023 partly due to the greening of Alberta’s grid with less coal and more gas power generation.
That prompted the government to cap energy costs at 13.5 cents/kWh last winter as prices rose, but a lot of people were not aware they had to pay back the discount applied from January into March.
Brownsberger says the government will be doing the same thing this winter.
“We’re going to cap it and we’re going to have to pay it back,” he told Rotary. “So those people who got that 34-37 cents kilowatt-hour cost are looking for options to jump off the RRO and into a fixed contract rate.”
Brownsberger says aside from great fixed-rate pricing from Sponsor Energy, there’s all sorts of retailers who have fixed pricing.
“Check the term period, check to see if there’s any cancellation fee. You should be able to get some good rates on a five-year term,” he said.
Brownsberger also recommends visiting the Utilities Consumer Advocate (UCA) website for comparison rates of all electricity and gas retailers in Alberta along with detailed information on water bills.
