Starting Oct. 1, natural gas consumers in Alberta, connected to the distribution system, will automatically receive credits directly on their regular monthly bills to cover costs that exceed $6.50 per gigajoule.
The exact timing will vary depending on the consumer’s billing cycle.
Also starting Oct. 1, eligible consumers using other heating fuels that are petroleum-based will be able to apply for rebates through a separate rebate application process since they are not connected to the distribution system.
The province says these rebates will provide critical support and cost certainty until March 31, 2023 to at least 1.6 million homes, farms and businesses, including those in rural and remote areas.
“We are stepping up to provide more and more relief for Albertans as prices remain high,” said Associate Minister of Natural Gas and Electricity Dale Nally, in a statement.
“This rebate will provide price protection for millions of Albertans using natural gas, kerosene, propane and other fuels next winter. It will help families, farms and businesses manage high heating costs in the upcoming winter to keep life affordable in Alberta.”
Starting Oct. 1, all consumers connected to the natural gas distribution system, and paying a bill directly to a natural gas retailer with less than 2,500 gigajoules (GJ) of annual natural gas consumption, will be eligible for government-provided rebates, which will appear directly on bills. No application will be necessary to receive the rebates if you are connected to the natural gas distribution system.
Under this rebate program, if the monthly default natural gas rate from the regulated utility providers (ATCO Gas North, ATCO Gas South and Apex Utilities) goes above $6.50 per GJ, the government will provide rebates to all consumers covering the difference between $6.50 and the regulated rate, on a consumption basis. For example, if any of the regulated rates go to $7.50 per GJ for the month of November, then all consumers would receive a rebate on their bill covering $1 for every GJ used during the month of November.
The province says these rebates will appear directly on eligible bills to protect consumers on both regulated and competitive plans, like fixed-rate contracts.
Eligible consumers not on the natural gas distribution system, or consumers using the annual equivalent of 2,500 GJ or less in other heating fuels (such as propane, kerosene and heating oil), will also be eligible and can apply directly for their rebates through a separate application system.
For example, if one of the default regulated rates goes to $7.50 for the month of November and an eligible consumer with a natural gas storage tank on their property purchases the equivalent of 200 GJ, that consumer can apply for a $1 per GJ rebate for that amount of fuel. Specific eligibility limits for each fuel type are listed on alberta.ca.
The rebate for these heating fuels will be calculated in the same method, using a standardized equation to determine the consumption equivalency for the alternative fuel. Information on how to apply will be released before the Oct. 1 start date.
Regular updates on the default rate will be posted on alberta.ca for the duration of the rebate program to keep Albertans informed about when they can expect rebates to be paid. In Alberta, the default regulated rates are set for the entire month and do not fluctuate throughout the month. If a regulated rate in Alberta is set above $6.50 per GJ, the rebates will go into effect for all eligible consumers.
The province says additional rebate details will be released in the coming months.