Alberta’s reputation is built on its role as an energy producer. From its position in the oil industry to its strong hold on the energy market in general, Alberta really is all about energy production. In fact, a number of its cities have been founded based on an economy of oil, natural gas, and electricity production. As a result, a number of Alberta’s big name energy producers have been around for more than a century.
TransAlta, for instance, has been operating out of Calgary, supplying natural gas and electricity to the region for more than a 100 years. In fact, the company has been around so long it has even been offering green energy since 1911, when the hydroelectric dam was constructed at Horseshoe Falls.
Likewise, ENMAX Energy has been serving Alberta since 1905 and has even been producing its own energy for nearly 110 years, on top of sourcing additional electricity from the open market and other energy producers.
The longevity of these companies is a powerful contributor to Alberta’s economic strength, but even though they’ve been feeding Alberta’s economy for more than a century, they are not the only contributors to Alberta’s economic success. Alberta heavily depends on new energy providers, too.
Who’s Alberta’s newest energy provider?
Hudson Energy is one of Alberta’s newest energy providers. It was originally founded in 1997 in the US, but was acquired by Just Energy in 2010 and has since expanded to four Canadian provinces, including Alberta.
Why is it important for Alberta to keep acquiring new energy providers? Because diversity in energy providers helps to keep energy costs in check.
Ever since the deregulation of the energy market began (in 1985 with the natural gas market and 1996 amongst electricity providers), one principle has been guiding energy providers when it comes to structuring their rate plans: competition. Separating energy production from energy distribution allowed energy suppliers to take more control over their rates and services, and that meant they had more flexibility to create more appealing energy rates to attract consumers away from the competitors. Now, the more energy providers in the market, the more competition, and that means more initiative to keep rates low and offer consumer-friendly plans, which means energy consumers are reaping all the cost-saving benefits.
Creating a consumer-based energy market
In addition to creating a market of competitive low rates, the introduction of new energy providers into the economy also creates a consumer-based energy market. In order to distinguish themselves from their competitors, energy providers have begun to specialize, which means more options have been created specifically for certain industries or business sizes. This means energy rates and plans that are geared towards the specialized needs of consumers—you just have to find the company that is catering to your specific needs to benefit.
Diversity strengthens the reliability of the entire energy industry—as well as the economy
Of course, personal gain isn’t the only benefit of adding new energy providers to Alberta’s energy market. A variety of energy providers also creates an opportunity for diversity within the energy industry. Companies have the incentive to expand and diversify to offer their clients new sources of energy, like green energy solutions, in order to remain in competition with the innovations of competitors. This means consumers have more options when it comes to energy sources, but it also means an increase in diversification within the industry, which could go a long way towards strengthening and developing Alberta’s overall economy.
