Life is about to get more expensive for Albertans.
Direct Energy Regulated Services has released its default natural gas rates for March 2025, impacting customers in the ATCO Gas North and South service territories who have not opted for a competitive supplier.
In addition, the federal carbon tax is scheduled to increase on April 1. The price will rise from its current rate of $80 per tonne of CO2 equivalent to $95 per tonne, an increase of $15 per tonne.
The carbon tax is applied as a fuel charge on fossil fuels like natural gas, based on their carbon emissions. For natural gas, the charge is calculated per cubic metre — or converted to gigajoules (GJ) on bills.
The new rates, approved by the Alberta Utilities Commission, reflect rising costs and market adjustments, with increases taking effect in March across both regions.
In the North Service Territory, the regulated natural gas rate will rise from $2.127 per GJ in February to $2.446 per GJ in March. This adjustment is driven by a market price of approximately $1.88 per GJ for March supplies, as reported by the NGX, plus an additional $0.566 per GJ to account for February and prior months’ reconciliations.
Based on an average residential consumption of 15 GJ, a typical gas bill in the North territory for March is expected to reach approximately $211. This figure includes transmission and distribution service provider (TDSP) charges levied by ATCO Gas, which may vary by region.
In the South Service Territory, the March rate mirrors the North, climbing from $2.127 per GJ to $2.446 per GJ. The rate breakdown is identical, with a market price of $1.88 per GJ and a $0.566 per GJ adjustment for prior months.
Despite the same rate, a typical residential bill in the South, also based on 15 GJ of consumption, is projected at approximately $190 for March.
The lower cost compared to the North is attributed to differences in TDSP charges applied by ATCO Gas across the two regions.
For now, customers in both territories will see higher bills reflective of current market conditions and prior reconciliations.
