Floating Rate Update

By February 9, 2015 General No Comments
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This was current when it was written, but the Floating Rate continues to move up and down with the Alberta market. To get the most up to date numbers, check out our Floating Rate page!


tl,dr: The Floating Rate is now the cheapest rate on the market today. Sign up now.


I wanted to take a moment to talk about the floating rate and why it might be a good option for you.

By way of background, the floating rate is determined by the real-time electricity spot market. In other words, it goes up and down with the available supply and demand for electricity. This means that it can spike to dizzying heights, but can also fall to absurd lows.

Over the last six months, the floating rate has remained extremely low. In fact, for the last quarter (October to December 2014), it’s the lowest the wholesale price has been since 2000; i.e. in the last 15 years!

Here’s some numbers to give you an idea of what I’m talking about. The prices are in ¢ / kWh, for Edmonton. The Regulated Rate Option (RRO) is what most people have been paying the last 6 months:

 BURST ENERGYREGULATED RATE OPTIONSAVINGS
Jan 20155.0017.30232%
Dec 20144.0497.54546%
Nov 20145.3787.12725%
Oct 20144.0118.73754%
Sept 20143.7107.95453%
Aug 20146.2398.02122%
6 month average4.7317.78139%

While it is possible that the rates could rise, I don’t expect they will. Natural gas prices remain low, and Enmax is expected to open their 800MW Shepard Energy Center early this year, further increasing electricity supply and thus further driving down the wholesale price. If, however, they do start rising, you can always welcome (encouraged, even), to lock in one of our fixed rates.

Start “Floating” Today

Prices posted for period prior to December 2014 are for comparative purposes only, based on combined average retailer prices and do not reflect actual Burst Energy’s prices.

The Residential Dynamic ( Floating ) Price Historical Chart is for demonstration purposes only and is not part of the billing process. Actual rates may fluctuate and are subject to change at any time without notice.