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Alberta Rate Of Last Resort: What Consumers Need to Know


Premier Danielle Smith announced the RRO is being renamed the Rate Of Last Resort
Premier Danielle Smith announced that Default electricity rates will be stabilized by being set for each provider for two years on April 18, 2024 at the Alberta Legislature.

Hey there, energy enthusiasts! Big news coming out of Alberta – the provincial government is renaming the utility option (RRO) to the Rate Of Last Resort, and we're here to break it down for you.


So, what's the deal? Well, first things first, they're changing the name of the electricity Regulated Rate Option (RRO) to the Rate of Last Resort. This new title aims to provide more clarity to electricity consumers like you and encourage you to explore other retail energy options.



But that's not all – they're also shaking things up when it comes to how the rate is structured. Instead of setting the rate every month like they do now, the new Rate of Last Resort will be set every two years for each provider. This means utilities will have more time to negotiate better deals on electricity from the wholesale market, making the rate more predictable. The Rate Of Last Resort (RLR) is NOT MEANT to save consumers money or be the cheapest option.


The Rate Of Last Resort (RRO) is Volatile and Albertan's should LEAVE NOW!
Premier Danielle Smith labels Regulated Rate Option (Your Local Utility) as VOLATILE

These changes are set to be introduced and discussed throughout the spring and summer of 2024, with plans to roll them out on January 1st, 2025. Exciting stuff, right?


Now, let's talk about what this means for you. If you're currently on the RRO, don't worry – you'll still have the option to switch to a competitive rate at any time. Plus, providers will now be required to confirm with you whether you want to stick with the Rate of Last Resort or explore other options within 90 days of signing up. They'll also be sharing info on how to access resources from the Utilities Consumer Advocate and reminding you of your energy rate options on your monthly bills. It could not be MORE OBVIOUS that you need to LEAVE the Rate Of Last Resort and find a competitive retailer.


But what about those electricity prices, you ask? Well, in the last quarter of 2023, we saw a significant drop in the number of residential RRO customers, with less than 30% of Albertans currently under the RRO. And with the new default rate schedule, power providers will be able to buy electricity up to years ahead, reducing volatility in prices.


Speaking of prices, let's take a quick look at the numbers. In 2023, the average RRO price was 23.89 cents/kWh in the Edmonton region and 22.677 cents/kWh in the Calgary region. With prices fluctuating throughout the year, these changes aim to bring more stability to your electricity bills.


And that's not all – the government is also looking into options for reducing distribution and transmission costs, so stay tuned for more updates on that front.


Exciting times ahead for the Alberta energy market! Keep an eye out for further developments, and don't hesitate to reach out if you have any questions. Together, we can navigate these changes and make informed decisions about our energy future.


THE TEAM

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