Owning a home means paying for more than just your mortgage. You are also responsible for utilities and property taxes. These costs can change from month to month and year to year. This page explains the main utilities homeowners usually pay for in Alberta, how property taxes work and the common legal issues that arise with utilities and taxes.
Need to know
- Utilities are the basic services that keep your home running and include electricity, natural gas, water, and waste and recycling.
- In Alberta, you can choose to get your energy services (electricity and natural gas) from either a default/regulated retailer (the Alberta Utilities Commission regulates such retailers) or a competitive retailer.
- In Alberta, municipalities are responsible for providing water, wastewater, garbage and recycling services to residents – many which are contracted out to private utility companies to provide billing and customer service.
- As a homeowner in Alberta, there are specific laws dealing with utilities and taxes such as the Municipal Government Act, the Consumer Protection Act and various utilities laws that apply to both regulated and competitive energy retailers, Rural Electrification Associations (REAs) and municipally owned utilities.
- There are legal consequences for not paying your utilities and property taxes. Unpaid property taxes and utility bills can block or delay a home sale until you pay them – especially if your municipality or utility company has registered them as outstanding arrears or debt against your property title.
What counts as utilities?
Utilities are the basic services that keep your home running. You are usually responsible for setting up and paying for these services yourself. Common household utilities include:
- Electricity
- Natural gas
- Water
- Waste and recycling
Electricity and natural gas
In Alberta, you can choose to get your energy services (electricity and natural gas) from one of the following:
- a default or regulated retailer (also known as a “regulated rate provider” for electricity or “default supply provider” for natural gas) that the Alberta Utilities Commission (AUC) regulates or
- a competitive retailer that you sign a contract with. The AUC does not regulate the rates of competitive retailers.
If you have not signed a contract with a competitive retailer for energy services, then you are getting your energy at the regulated rate through a default retailer. The regulated rate is the unit price of electricity or natural gas. The AUC, municipal councils, Rural Electrification Associations (REAs) or other local regulatory bodies set this rate. This rate may change during the year and depends on where you live in Alberta.
There are two main charges that make up your energy bill: the cost of the energy you consumed (which is variable) and the cost of delivering the energy (which is mostly fixed). Your retailer will usually bill you monthly.
Distribution companies (“distributors”) build and maintain the distribution systems that transport natural gas, electricity and water directly to customer homes. On your energy bill, you will see a delivery charge to recover the costs of the distribution companies in providing their services. The Alberta Utilities Commission regulates distribution company rates.
Did you know?
While you can choose to get your energy services between regulated retailers or competitive retailers, you cannot choose your distribution company as they are based on location. For more information on the default retailers, competitive retailers and distribution companies serving your area, what makes up your utility bill, plus education on utility services, refer to the Utilities Consumer Advocate website.
Water, wastewater, garbage and recycling
In Alberta, municipalities are responsible for providing water, wastewater, garbage and recycling services to residents. Many municipalities contract out to private utility companies to provide billing and customer service for municipal services such as water, wastewater, garbage and recycling.
Rates for such utility services will vary by municipality. Major municipalities in Alberta like Edmonton and Calgary bill monthly, while some smaller municipalities or rural areas may bill every few months. In Alberta, most water bills have fixed and variable costs based on how much water you use.
Did you know?
The AUC is a quasi-judicial body that regulates investor-owned natural gas, electric and water utilities and certain municipally owned electric utilities. To learn more, refer to the AUC website.
What do property taxes cover?
Property taxes are paid to your municipality and are one of the major revenue sources for municipalities. They help pay for local services like:
- Roads and sidewalks
- Schools
- Emergency services
- Parks and libraries
Property taxes are based on the assessed value of your home and the tax rate set by your municipality.
Did you know?
The assessed value of your home is based on your home’s estimated market value on July 1st of the previous year. Most homes are assessed with the sales comparison model – meaning that people on the same street with houses around the same size, age and value will be assessed at about the same value. The new baseline value will also take into account the selling price of similar neighbouring homes in the previous year.
You should receive your property tax notice once a year as they are often due once a year by a specific deadline. Many homeowners pay:
- The full amount by the deadline, or
- Monthly through a tax installment plan
If you miss the deadline to pay your property taxes, your municipality may charge you late payment penalties. Some mortgage lenders collect property taxes as part of the mortgage payment, but this is not automatic — you should always confirm how your mortgage lender handles property taxes.
Laws that apply to utilities and taxes
As a homeowner in Alberta, there are specific laws dealing with utilities and taxes that you should be aware of.
Municipal Government Act
In Alberta, the Municipal Government Act gives municipalities the power to shape their communities, as well as regulating how they are funded and how they should govern. The Act covers municipal responsibility over property tax assessments –which includes requirements for assessment processes, assessment notices, appeal procedures, and remittance of collected property tax to the province. Under the Act, municipal councils also have the power to bass bylaws about public utilities and the provision of them.
Utilities laws
In Alberta, there are several laws that apply to both regulated and competitive energy retailers, Rural Electrification Associations (REAs) and municipally owned utilities:
- Alberta Utilities Commission (AUC) Rule 003 – this AUC rule outlines:
- billing requirements that apply to energy service providers (which include regulated and competitive energy retailers, Rural Electrification Associations (REAs) and municipally owned utilities)
- minimum service standards for utility customers who are on a regulated rate
- Electric Utilities Act – this provincial law sets out the governing structure and operation of Alberta’s electric utilities, which includes retailer and distributor roles
- Gas Utilities Act – this provincial law sets out the governing structure and operation of Alberta’s natural gas utilities, which includes retailer and distributor roles
- Code of Conduct Regulation – this regulation under the Electric Utilities Act and Gas Utilities Act outlines required compliance, conduct and business practices for distributors, regulated rate suppliers and retailers
Consumer Protection Act and Energy Marketing and Residential Heat Sub-metering Regulation
In Alberta, if you sign a contract for natural gas and electricity services (an “energy contract”) with a competitive retailer (also known as a “electricity and natural gas marketer” or “energy marketer”), then the Consumer Protection Act and its associated regulation apply to you. When you sign an energy contract, it becomes a legal agreement between you as the consumer and the energy marketer. It covers:
- the price you will pay for energy
- terms and conditions for your purchase
- specific requirements under the regulation such as contract expiry date, renewal and cancellation rights
The regulation also covers what energy marketers can and cannot do when dealing with you as a consumer. To learn more about your consumer rights in such a situation, refer to the following Government of Alberta resource Electricity/Natural Gas Contracts.
Potential issues
Property tax assessments
The City of Calgary sends out yearly assessment notices in early January. After the notice is mailed, you have 60 days to talk to a City Assessor if you have questions about your assessed value. You can learn more about this assessment review period. The Assessor may agree to make a change without the need for a hearing. If you can’t solve your issue with the Assessor, you may file a formal complaint with the Calgary Assessment Review Board (ARB). To be valid, a formal complaint with correct filing fee must be filed prior to the final date for complaint shown on your Assessment Notice. The ARB cannot hear a complaint that does meet these requirements, even if you are waiting to hear back from your Assessor.
If you have concerns with your assessment, call 311 and ask to talk to your assessor. If you can’t resolve your concerns with your assessor, you may file a complaint with the Board. The Assessment Review Board is an independent tribunal that hears complaints (appeals) relating to property assessments.
Even if you are appealing your property tax assessment, you must still pay your property taxes, . Under the Municipal Government Act, making a complaint about your assessment does not relieve you of your obligation to pay any taxes on the property, or any penalties for late payment of taxes.
Unpaid property taxes
Many homeowners do not realize how unpaid taxes can escalate into legal action. Under the Municipal Government Act, overdue taxes are an amount owing to the municipality and are recoverable as debt. They take priority over the claims of every person except for the government (“the Crown”) and are a special lien on the land and any improvements on it. If you do not pay property taxes, municipalities in Alberta have legal enforcement powers. This can include:
- imposing penalties
- registering a Tax Recovery Notice on the property title if you have tax arrears of more than one year and
- selling the property through a public auction to recover the arrears if you do not pay them within one year of the Tax Recovery Notice registration date
Unpaid utilities and utility disruptions
If you don’t pay your utilities, your utility provider may charge you late payment fees, shut off or disconnect your utility services and refer overdue amounts to a credit agency, including a collection agency. In Alberta, there are winter rules limiting electricity and natural gas disconnection during the winter months. If you are struggling to pay your utilities, it’s important to contact the utility provider early to ask about payment options.
Utility providers can legally disconnect electricity or natural gas services for non-payment, but they must follow specific rules and notice requirements under their customer terms and conditions (for default or regulated retailers), or the contract you sign with them (for competitive retailers). Depending on what the terms and conditions or your contract says, there can be many circumstances that may disconnect you including, for example:
- failing to provide access for meter readings
- threatening or harassing employees or agents
- not paying bills or past due charges
- committing safety violations, energy theft or fraud
- refusing to allow changes in facilities or equipment
You should always check your customer terms and conditions or contract for detailed procedures and grounds for disconnection. There may also be more specific rules about notice requirements, timelines and reconnection conditions.
Did you know?
Under, Alberta Utilities Commission (AUC) Rule 003, there are winter rules limiting electricity and natural gas disconnection during the winter months:
- For electricity services, your retailer cannot fully disconnect you between October 15th and April 15th but they may install a load limiter on your meter.
- For gas services, your retailer cannot fully disconnect you between November 1st and Aprl 14th .
Typically, disconnection arises when you do not pay your utility bills and have an oustanding balance. If you do not pay the balance when the winter ends, your retailer may fully disconnect your services when the winter rules end.
Incorrect utility meter readings and energy bills
Disputes can arise when utility bills are based on estimated or incorrect meter readings. Resolving these issues can take time, and homeowners may still be responsible for paying interim amounts while their dispute is under review. Review the terms of your utility company’s customer terms and conditions (for default or regulated retailers) or energy/service contract (for competitive retailers) for what you can do with incorrect utility meter readings or disputed charges.
If you have a problem with your energy bill, contact your retailer first. If you have not resolved your problem and need more help, you can contact the Utilities Consumer Advocate (UCA). The UCA works with consumers to investigate your issue and can try to help you resolve your concerns through mediation with your utility company. If you have any concerns and disputes involving regulated utilities and would like to make a formal complaint, refer to the Alberta Utilities Commission (AUC) website for more information. The AUC can only help with questions, concerns and disputes involving regulated utilities.
Utility contract transfers after buying or selling a home
Utility contracts are not automatically transferred when you buy or sell a home. Utility contracts usually stay with the person who set them up. New owners of a home open accounts in their own name and previous owners close their account for a home. Responsibility for utility bills usually depends on whose name the utility account is in. Previous owners may remain legally responsible for utility bills if they don’t close or transfer accounts correctly by possession date.
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