Enmax electricity rate to rise 20 per cent in July

Enmax is raising its default electricity rate for Calgary customers by 20 per cent, effective July 1, boosting the average homeowner's electricity bill to $97 a month.

Most residential customers don't havelong-term contracts for electricity and pay a month-to-month rate.

Enmax says electricity prices are going up because of demand in Alberta's strong economy.

Company spokesman Peter Hunt says a growing amount of the default rate is based on prices in the wholesale market each month.Hesays power prices are expected to continue rising.

"A number of companies, Enmax included, have announced plans for significant amounts of new power generation, but that is not going to be coming on stream for the next few years," said Hunt."And so we are facing the likely prospectof rising prices over the foreseeable future until extra supply comes on."

Hunt says customers who aren't happy with monthly price fluctuations can lock in a rate for one, three or five years by signing a contract with an energy provider.