Rate of Last Resort

Alberta’s Default Electricity Option is Changing: What You Need to Know

Starting January 1, 2025, the Government of Alberta will implement changes to the province’s default electricity option, transitioning customers on the Regulated Rate Option (RRO) to the new Rate of Last Resort. Here’s an overview of the changes and how they may affect you.

What is the Rate of Last Resort?

The Rate of Last Resort will become Alberta’s default electricity option on January 1, 2025. This option is designed for consumers who either cannot or choose not to sign up with a competitive electricity retailer.

How Much Will the Rate of Last Resort Cost?

In the Calgary area, the Rate of Last Resort will cost 12.06¢ per kWh starting January 1, 2025. Rates are determined through processes with Alberta’s regulatory authorities and will vary across the province depending on your location.

Are There Other Electricity Options?

Yes! Alberta’s competitive electricity market allows residents to choose a plan, provider, and payment option that best suits their needs. Albertans are encouraged to explore their options to find the most suitable rate.

Regulated Rate Option (RRO) customers can switch to a retailer of their choice at any time. For a list of electricity retailers, visit ucahelps.alberta.ca or call 310-4822 (toll-free within Alberta).

How Does the Rate of Last Resort Differ from the Regulated Rate Option?

Unlike the RRO, which fluctuates monthly based on market conditions, the Rate of Last Resort will offer a fixed rate from January 1, 2025, to December 31, 2026. This fixed rate can only be adjusted by a maximum of 10% after each two-year term.

Will There Be Additional Fees with the Rate of Last Resort?

The Rate of Last Resort includes a 0.1¢ per kWh consumer awareness surcharge. This fee supports the Utilities Consumer Advocate (UCA), which will actively inform Rate of Last Resort customers about available electricity options.

To facilitate this, customer names, phone numbers, email addresses, and mailing addresses will be shared with the UCA every two months after the Rate of Last Resort begins. All other standard fees and charges will still apply.

How Can I Tell If I’m on the Rate of Last Resort?

The Rate of Last Resort will not take effect until January 1, 2025. If you’re currently on the RRO and take no action, you’ll automatically be switched to the Rate of Last Resort on that date.

If you haven’t signed up for a retail electricity plan, you’re likely on the RRO. Check your electricity bill for “RRO” or contact your retailer if you’re unsure.

What Should I Do If I’m Struggling with My Utility Bills?

If you’re facing challenges paying your utility bills, assistance is available. Contact the Utilities Consumer Advocate at 310-4822 or visit ucahelps.alberta.ca. Additional resources can be found at wholesale.energy/faq.

Full CBC Calgary Interview

For the short CBC interview video please go to your news page for the article which can be found here.