Utilities in Canada; Complete Guide on the Types and the Costs!

What Is the Cost of Utilities in Canada?

The cost of utilities in Canada varies by province. For electricity, the average monthly cost for a typical household consuming 1,000 kWh ranges from $73 in Quebec to $387 in the Northwest Territories. The differences are due to factors such as energy sources, population density, and distance from generation sources. The average residential cost of electricity in Canada is $0.192 per kWh, including fixed and variable costs, based on an average monthly consumption of 1,000 kWh. The rates for basic utilities and service providers also vary by province.

Electricity

In the following section we will review electricity as a utility individually.

What Is the Role of Electric Utilities in Canada’s Industrial and Economic Life?

The electric utilities in Canada play an important role in the production, transmission, distribution, marketing, and sale of electric power. These utilities are responsible for 92% of the total production of electrical energy in the country, and the remaining 8% is produced by industrial establishments to use themselves. hydroelectricity, followed by nuclear, natural gas, coal, and non-hydro renewables is the leading type of power generation by utilities in Canada. Electricity’s impact on the economic and political life of the country is significant.

How Are the Electricity Prices in Canada Compared to Other Countries?

Canadian consumers benefit from some of the lowest electricity prices in North America. In Canada, the lowest electricity prices are found in British Columbia, Manitoba and Quebec.

These three provinces have access to low-cost hydroelectricity from large-scale projects, according to Hydro-Quebec’s annual report on electricity prices in major cities in North America. In 2014, average prices for residential customers, in cents per kilowatt-hour, were 8.12 in Montreal, 9.12 in Winnipeg, and 10.93 in Vancouver – the lowest in major North American cities, while prices in Charlottetown – 17.37 and Edmonton – were among the highest.

Hydro‑Québec generates, transmits and distributes electricity. The largest power utility in Canada and a major player in the global hydropower industry, Hydro‑Québec also operates a vast high-voltage transmission system.

Understanding Your Utility Bills

Kilowatt-hours is the unit for measuring the electricity. The amount that you pay depends on the price of the electricity and the amount you consume. By multiplying the cost of a KWH by the number of KWH used you can calculate your monthly electric bill. You may use higher or lower than the average residential customer who uses approximately 500 kwh per month.

Also you can break down your electric bill. Your electric bill has 2 components. One component of your bill is supply charges. There are 2 types of  facilities that can provide your electric supply service:

1. The investor-owned electric company that provides delivery services in your area
2. A competitive supplier.

The other component of your electric bill is the delivery charge. Delivery charges include:

• Transmission Charges:
  • The Federal Energy Regulatory Commission (FERC) regulates these charges. Transmission charges are used to build, maintain, and operate the transmission system. The transmission system brings electricity from power generators to the local distribution system.
• Public Policy Charges:
  • State and federal governments mandate these charges. Some of the line items on your bill that fall into this category are:
    • energy efficiency
    • renewable energy
    • electric vehicle charge
    • distributed solar charge

Delivery service rates will vary depending on the town or city in which you live. The only way to reduce the delivery part of your bill is to use less electricity, which will also reduce your supply charges.

Example of How You Will Be Charged

You pay a total of 31 cents per kWh for electricity: delivery charges – 16 cents per kWh and supply charges – 15 cents per kWh.

The company tracks your usage, which is about 600 kWh per month. Your monthly bill ends up being $186 (31 cents per kWh x 600 kWh = $186). Since the supply charge is 15 cents, the supply part of the monthly bill is $90 (15 cents per kWh x 600 kWh = $90). This $90 is the only part of the bill that is subject to competition. You will pay an average of $96 ($186 – $90 = $96) per month for the distribution charges of the company for delivery no matter which facility provides this supply.

Gas

Next, we will discuss gas as a part of your utilities. 

Determining Your Gas Costs

Therm is the units that natural gas is measured in. both the price and the amount you consume determine how much you pay. By multiplying the cost of a therm by the number of therms used, your monthly gas bill is calculated. You may use less or more than the average residential non-heating customer that uses approximately 20-30 therms per month.

About the Gas Supply Charges

Your gas bill has 2 components. One component of your bill is the supply charge. Your supply charge covers the costs associated with purchasing and transporting natural gas to your territory. There are 2 types of generator facilities that can provide your gas supply service:

• The investor-owned gas company that provides delivery services in your area
• A competitive gas supplier.

What Is Energy Efficiency?

Increased energy efficiency is the result of the innovations in housing, construction, and transportation. Lower energy costs, reduced greenhouse emissions and improved operating performance is the things you can take advantage of as a consumer.

Understanding Your Water Bill

Water billing structures differ across communities, so it’s advisable to reach out to your local water utility for specific details. Nevertheless, in most parts of Alberta, water bills typically consist of two primary elements: a fixed fee component and a variable amount determined by your water consumption, as recorded by a water meter. Three main charges can make up your water bill are water, wastewater and drainage.

What Are the Fixed Fees in Water Bill?

In water billing, there are consistent charges applied each period, which cover the essential costs of water service provision, regardless of consumption volume. These charges ensure the infrastructure’s maintenance and operation, supporting the continuous delivery of water services. Here we explained them:

• For the costs of reading the meter monthly and issuing your bill, the maintenance of your water meter basic monthly water service charges.
• For the wastewater treatment services which is the cost to treat sanitary sewer water,
• Basic monthly wastewater service charges.
• Basic monthly drainage service charges covering the cost of maintaining the sanitary sewer and the storm water system.
• Covering the cost of preserving the sanitary sewer and the storm water system basic monthly drainage service charges.
• Storm water charges for collecting the unmetered water (rainwater or melted snow) that flows off your property into the sewer system.

How Can I Pay My Bill Online?

It’s recommended to pay your utility bills online via your bank’s website at least three days before the due date to prevent late fees. Most banks offer the option to schedule payments in advance. Also you can send cheque or money order payments to Surrey City Hall before the utility due date to avoid penalties. Cheques should be payable to the City of Surrey and include your utility account number. Note that payments not processed due to cheque errors, insufficient funds, or returned items will incur a late payment penalty.