The provincial government has sweetened its gas rebate coffers, boosting rebates to Alberta businesses and residents by $852 million Tuesday.
Premier Ralph Klein, who has come under fire in recent months as Albertans struggle to cope with ballooning utility prices, announced earlier this week that businesses and other non-residential consumers will receive rebates of up to $30,000 a month between Jan. 1 and the end of April.
All commercial, industrial and farm businesses, including community facilities and non-profit associations, will be given rebates of $6 per gigagoule to a maximum of 5,000 gigagoules a month. The commercial rebates, which won’t be offered to companies that obtain gas through direct supply contracts, will cost the Klein government $360 million.
Rebates for residential gas consumers will be tripled from $50 to $150 a month. The residential component of the Enhanced Rebate Program, which will total $487 million in provincial aid, will include rebates equal to $6 per gigagoule for hard-hit landlords such as apartment and condominium owners, who won’t be subject to the 5,000-gigagoule limit facing commercial gas consumers.
Provincial officials involved in the cashback plan say the rebates will help shield customers from ballooning gas costs across the continent, especially during the winter months when consumption is at its peak. At this time last year, ATCO natural gas prices ranged from $2.37 to $3.36 per gigagoule. ATCO prices now averages about $9.29 per gigagoule.
The province estimates the rebates will save both residential customers and businesses about two-thirds off their gas bill. Klein said the average two-adult Alberta home will receive $1,680 in rebates, which includes earlier-announced payouts of a one-time $300 energy tax refund and residential electricity rebates of $40 a month for one year. The gas rebates will be applied directly to monthly bills.
The province has also established a $5-million contingency fund from lottery revenues to help low-income earners such as seniors cope with the increased costs.
“Alberta’s natural gas belongs to all Albertans, and they have told our government that in times of high prices such as we’re seeing this winter, the revenues from that gas should be returned to them,” Klein said in a statement.
