Enmax "Fixed" Rate - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

MacFlame · 01-07-2011, 04:57 PM

My wife pays all the bills in my household...and rightfully so, because I can barely remember to put socks on in the morning sometimes. So, recently while going through our yearly budget, I open up our Enmax bill to see what kind of gas consumption we are currently going through.

This is what I read: "EasyMax Fixed 5 Year rate........6.764 GJ @ $9.79 / GJ"

Looking at this, I immediately say" Holy Crap, that seems rather high, being that NG prices are at all time lows".

So, I phone Enmax and ask how long of this "5 year Fixed" rate I have remaining. She says," Oh, you can can cancel at anytime."

So, I ask, "What are my options?"

"Well", she says, "you can switch to the floating rate of $2.88 / GJ."

To which I replied, "Well, duh, sure I would like to switch over! I'll be saving more than 3 times what I'm paying now."

After some "discussion", she gave me a $100 credit for, I don't know, being an idiot for not noticing this sooner or something.

So all of this leads me to some questions that hopefully others can try and explain to me better than the Enmax employees.

1.) In any other industry, a "FIXED" rate, means a "FIXED" rate for a pre-determined period of time. In this case, it is not a fixed rate for any period of time, even though Enmax claims this is a 5 year "Fixed" Rate on their bill. Truthfully, I find this rather misleading in that people (including myself) are lead to believe that they are in some sort of contract, which sets the rate for a period of time, which we are not. Kind of false advertising no?

2.) Why is the variable price not posted on the bill? I asked Enmax this and they responded that I could have either phoned them or looked on their website. Does Enmax seriously want every customer phoning them to determine what the variable rate is once per month as she re-iterated to me? I don't know, not posting it on the bill seems rather slimy to me......

This is my analogy. Maybe it's not a very good analogy, because I simply don't understand this process..but here goes.

What if i went into a gas station and on the sign it says $3.00/L. However, lets say that gas prices were actually $1.00 / L. Does that give the store clerk the ability to put the blinders on and accept my money as if he was charging me $3.00 /L? Would the store clerk be able to say " Yes, I know that gas prices are $ 1.00 /L. but he gave me $3.00 / L. The $3.00 / L is a "deal" that we provide for all customers so that their gasoline bills don't fluctuate. I didn't steal his money, he gave it to me. He should have checked my website to see what gas prices really were!"?

I know, it's probably a pretty bad analogy, but the whole thing just seems slimy and misleading to me.

The Enmax employee tried to say that it's just like a mortgage. But it's not. A 5 year fixed motgage is fixed...there's no debate about it.

She also said that if gas prices were higher than the "fixed" rate I would'nt be calling to complain. Which is true. But, I responded that if Enmax truly felt that they were going to "help" customers by giving them a 5 year "fixed" rate lower than that of the variable, I'm pretty sure Enmax would not be very profitable.

Is the 'fixed" rate seriously as bad as I'm making it out to be, or is there something I'm just not understanding? Truthfully, I had no idea I was even in on this "fixed" rate.

Rathji · 01-07-2011, 05:13 PM

Fixed rates from Enmax are a blessing but only if you pay attention to going rate.

Da_Chief · 01-07-2011, 05:18 PM

You're fixed is probably around $6/ GJ. So this is actually a nice thing from Enmax if you pay attention to the going rate. You can switch back and forth at all times. So fix it when rate goes up and variable when it goes down.

Coys1882 · 01-07-2011, 05:43 PM

Quote:

Originally Posted by Da_Chief

You're fixed is probably around $6/ GJ. So this is actually a nice thing from Enmax if you pay attention to the going rate. You can switch back and forth at all times. So fix it when rate goes up and variable when it goes down.

So should I be mad at CEO Gary Holden or not?? Damnit - where is a Rick Bell article when you need one?

V · 01-07-2011, 05:52 PM

ENMAX contracts are far superior to any other option out there. There is nothing to be upset about here.

MacFlame · 01-07-2011, 05:57 PM

I'm not disagree with anyone...but how are they superior? Even at the "fixed" rate of $6 (today's fixed rate rate), that's more than double the going rate...how is anyone saving money other than Enmax?

I could understand the argument that if going rates went over $6, I'd be saving money...but call me a skeptic. I highly doubt Enmax would take a loss...I'm pretty sure they have a pretty good idea of what prices are coming.......

Anyhow, what's done is done. I just find it a little misleading.....

V · 01-07-2011, 05:59 PM

I don't pay too much attention to this stuff, but the flexibility that ENMAX offers is significantly better than the opposition. You can switch between floating and fixed and not pay any penalties. Direct Energy or others will make you pay through the nose, and generally for worse rates.

GGG · 01-07-2011, 09:08 PM

The fixed rate protects you as a consumer and has no penalty to get out of.

The 5 year fixed rate means that enmax cannot charge you more than the fixed rate you agreed to for 5 years. You however have the option to cancel that contract at anytime if prices were to drop. Enmax's contracts are some of the fairest in structure out there. They only protect you and not Enmax.

I am floating for gas but locked in electricity years ago a 7 cents a kwh. Right now the current price is 7.8 cents so I am saving money right now. I'm not sure how historically overtime I am doing but right now it makes sense. Currently I think you can lock in an 8 cents a kwh so you would pay a little more than the regulated rate right now but be protected against hikes to the price for 5 years.

Rathji · 01-07-2011, 09:39 PM

Quote:

Originally Posted by MacFlame

I'm not disagree with anyone...but how are they superior? Even at the "fixed" rate of $6 (today's fixed rate rate), that's more than double the going rate...how is anyone saving money other than Enmax?

I could understand the argument that if going rates went over $6, I'd be saving money...but call me a skeptic. I highly doubt Enmax would take a loss...I'm pretty sure they have a pretty good idea of what prices are coming.......

Anyhow, what's done is done. I just find it a little misleading.....

Its simple. When you pay your bill every month (or few months) you check the rate. If it is lower than your fixed rate then you can call and say you want the variable rate instead.

Of course you need to take into account how good your fixed rate is, because you don't want to give it up because of freak market conditions only to not be able to get i back.

Torture · 01-07-2011, 09:55 PM

THANK YOU for posting this.

2.88 <<<<<< 8.5

Bob · 01-08-2011, 11:28 AM

When I signed up a few years ago it went something like this:

Electricity fixed: 7c/kWh
Electricity floating: 10c/kWh

Gas fixed: $9/GJ
Gas floating: $4/GJ (this was in the summer)

So naturally I went with fixed electricity and floating gas. Anyone know what the current floating electricity rate is? It doesn't really seem to matter much though, since nearly 2/3 of my bill is "fixed" charges and other crap.

algernon · 01-08-2011, 11:41 AM

I would never deal with a company as sleazy as Direct Energy. Their door to door tactics are untruthful, their pricing sucks bullcocks and they are an American company providing billing, not involved with the delivery, service or integrity of the supply. All they are is a middleman. Why would anyone want to send money out of the country? Plus, if you go through Local Company Enmax for both Gas and Electricity, you are guaranteed to save $100 a year. That alone is enough reason.

Did I mention that Enmax is owned by the taxpayers of Calgary? Hmm, increase City revenues, or support scumbags from Minnesota?

Heartburn · 01-08-2011, 12:12 PM

Quote:

Originally Posted by Bob

When I signed up a few years ago it went something like this:

Electricity fixed: 7c/kWh
Electricity floating: 10c/kWh

Gas fixed: $9/GJ
Gas floating: $4/GJ (this was in the summer)

So naturally I went with fixed electricity and floating gas. Anyone know what the current floating electricity rate is? It doesn't really seem to matter much though, since nearly 2/3 of my bill is "fixed" charges and other crap.

Current Floating Electricity Rate from my December Bill is 5.879c/kWh

Drury18 · 01-08-2011, 01:14 PM

https://www.enmax.com/Energy/Res/My+...+RRO+Rates.htm

For January the Floating Rate is 7.894 c/kWh