Local Access Fee legislation to improve utility affordability and predictability

The following statement is attributable to Ruhee Ismail-Teja, Vice President Policy and External Affairs at the Calgary Chamber of Commerce: 

“On behalf of the Calgary Chamber and our business community, we are pleased to see the Government of Alberta take action to stabilize and decrease the burden of utility fees on consumers, including businesses. We know that businesses across the province – and small businesses in particular – have been struggling with rising input costs, with 52.5 per cent of businesses in Calgary citing these as their primary concern last quarter. Specifically, Calgary businesses have been directly impacted by the volatility of energy prices, with many witnessing increases of more than 100 per cent in their Local Access Fee (LAF) costs over the last several months. While both residents and businesses are affected by LAF calculations, the impact on business is heightened, and in 2022, over 63 per cent of the total LAF collected was paid by commercial customers. By prohibiting the use of variable rates when calculating municipalities’ Local Access Fees, the total cost of utilities will be more predictable and lower on average.

“While more detail is necessary to understand the new calculation format for the LAF and to ensure that municipalities are not unnecessarily impacted due to a decrease in revenue from this recalculation, we are encouraged by the province’s efforts to address these rising costs. We call on the province to continue engaging with municipal partners and stakeholders in the utilities industry and the business community more broadly to ensure any unintended consequences of this legislation are mitigated.”

ABOUT THE CALGARY CHAMBER OF COMMERCE  

The Calgary Chamber exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city. 

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