Why does the market price for electricity fluctuate?
Like a lot of things, electricity prices are influenced by supply and demand. Here’s an example of how this works: Recently, Alberta has seen an increase in population. With this population increase, there has been an increase in electricity demand. But if demand for power increases, and there are no new power plants built, electricity prices will increase simply because the demand is higher while supply remains the same. Another example: In Alberta, natural gas-fired generators are often used. Since power prices are also determined by the cost of raw materials used to create electricity, higher natural gas prices may result in higher electricity prices.
