Alberta electricity prices spark national acceleration
By Al Beeber - Lethbridge Herald on August 17, 2023.
LETHBRIDGE HERALDabeeber@lethbridgeherald.com Albertans may be feeling hot under the collar for more reasons than just the weather.The Consumer Price Index rose 3.3 per cent in July over the previous July after a 2.8 per cent increase in June, according to Statistics Canada.
The big hike for Albertans may have been felt in their electricity bills thanks to prices rising by a whopping 127.8 per cent on a year-over year basis, says the CPI report for July.
Nationally, electricity prices rose at a quicker pace year over year for July at 11.7 per cent than in June where the hike was 5.8 per cent, says the CPI. This was mostly due to the increase in Alberta’s electricity prices, says StatsCan.
“In the early months of the year, when demand was last this high, provincial rebates and a price cap kept prices lower for consumers. These policy interventions were gradually phased out and ended in spring 2023. A base-year effect also contributed to the increase. When the provincial rebate program was introduced in July 2022, prices fell 24.4 per cent month over month. This decrease is no longer impacting the 12-month movement, putting upward pressure on the year-over-year figure,” says StatsCan in its report.
On a year over year basis, natural gas prices dropped by 15.7 per cent last month compared to a 5.8 per cent decline in June. This is due, says StatsCan, “to a base-year effect in Ontario, where natural gas prices rose 22.6 per cent month over month in July 2022, following rate increases amid sustained global demand for natural gas.”
StatsCan say the mortgage interest cost index posted a record year over year gain of 30.6 peer cent and remained the largest contributor to headline inflation. Follow @albeebHerald on Twitter 4
-3
