Energy Cost Comparison
Comparing Energy Bills
Alberta’s natural gas has an important role in helping our province through the energy transition and reducing emissions. Natural gas is an abundant, local energy source supplied by mature infrastructure that allows Albertans to heat their homes, businesses, and water cost-effectively.
The electricity commodity is 6 to 7 times more expensive than natural gas in Alberta!
Based on the Utilities Consumer Advocate (UCA) 13-month average, from November 2021 to December 2022, the cost of electricity was 6 to 7 times more expensive than natural gas in Alberta. The Regulated Rate for natural gas was $5.98/GJ or 2.15ȼ/kWh and the average Regulated Rate for electricity was 13.65ȼ/kWh.
To view the historical rates for natural gas and electricity, visit the Historic Rates page on UCA’s website.
How is energy measured?
Energy can be measured in different units, like using teaspoons and tablespoons for baking. Natural gas is often measured in gigajoules (GJ) and electricity in kilowatt-hours (kWh). The conversion from GJ to kWh or kWh to GJ is simple:
1 GJ = 277.78 kWh or 1 kWh = 0.0036 GJ
Source: Canadian Energy Regulator
By converting your natural gas usage to kWh, you can easily compare how much you’re paying for your natural gas and electric commodity to assist in making decisions on space and water heating for your home or business.
Want to know how affordable natural gas is for space and water heating in Alberta?
Convert your natural gas consumption to kWh using the conversion formula above. If you purchase your natural gas from Apex Utilities, the conversion from GJ to kWh is provided on the first page of your invoice.
As an example, if your gas consumption is 10 GJ:
10 GJ x 277.78 kWh/GJ = 2,777.78 kWh
Commodity costs are only one component of your bill. There are several other components to your invoice that relate to the cost of delivering energy to your home and business through pipe and wire infrastructure, but for this conversion, we are focused on the commodity only.
Find your current electricity commodity rate from your bill. This is the rate you’re paying for electricity, in cents per kilowatt-hour (ȼ/kWh).
Visit the UCA’s website if you need help understanding your energy bills.
Source: Utilities Consumer Advocate
Note: The bill sample above is provided to help you locate the commodity rate on your electricity bill. It does not reflect the current 13-month regulated rate.
Multiply your natural gas consumption in kWh with your electricity commodity rate in ȼ/kWh or the average regulated rate.
10 GJ or 2,777.78 kWh at the November 2021 to December 2022 13-month average regulated rate:
(2,777.78 kWh x 13.65 ȼ/kWh)/100 = $379.17
Remember: There are 100 pennies in a dollar, so do not forget to divide by 100ȼ to get the rate in dollars.
Currently, natural gas is an affordable choice for space and water heating.
The following calculations illustrate the cost-efficiency of natural gas as a commodity and how much more you would spend if your natural gas usage was converted to electricity.
For 10 GJ of natural gas or 2,777.78 kWh:
- Natural gas commodity cost: 10 GJ x $5.98/GJ = $59.80
- Electricity commodity cost: (2,777.78 kWh x 13.65 ȼ/kWh)/100 = $379.17
Based on this example, by choosing natural gas for space and water heating, you would save up to $319.37 in commodity costs!