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Is Alberta The Next Lubbock Texas? The Rate Of Last Resort Is Approaching!


Dom & Jordanna Linic

The energy landscape is constantly evolving, and two key markets are undergoing significant changes: Lubbock, Texas, and Alberta, Canada. Both events present unique opportunities, especially for energy sales consultants. While these changes are different in nature, they share a common thread—each market offers a chance for sales professionals to tap into a flood of potential customers. Let’s explore the similarities and the potential for energy consultants to maximize these opportunities.


Lubbock’s Deregulation (2024):

Starting January 5, 2024, Lubbock will transition to a deregulated electricity market. Previously served exclusively by Lubbock Power & Light (LP&L), residents will soon have the power to choose from multiple electricity providers. Deregulation brings competition, which typically leads to better prices, improved service, and more choices for consumers. Lubbock residents MUST select a provider by March 4, 2024, or they will be automatically assigned a default provider at potentially higher rates. This shift creates an ideal environment for energy sales consultants to educate and assist customers in finding the best energy deals.


Alberta’s Rate of Last Resort (2025):

Alberta is set to rename its Regulated Rate Option (RRO) to the “Rate of Last Resort” (ROLR) in January 2025. While this new name aims to clarify that the ROLR is not meant to save consumers money, it highlights the importance of exploring competitive energy retailers. Alberta’s government is also restructuring the ROLR to make it more predictable by setting the rate every two years. However, the main message is clear: the Rate of Last Resort is not the most cost-effective option. Like Lubbock, this transition provides a prime opportunity for energy sales consultants to steer customers toward competitive, cost-saving options.



Similarities Between the Two Energy Events

  1. Consumer Empowerment: Both Lubbock and Alberta are placing the power in the hands of the consumer. In Lubbock, deregulation opens up the market, allowing residents to choose from multiple providers. Similarly, Alberta is urging consumers to leave the Rate of Last Resort and seek competitive options. In both cases, the message is the same: consumers can take control of their energy choices, and energy consultants can guide them in making informed decisions.


  2. Competitive Market Influx: Both events invite a surge of competition. In Lubbock, deregulation will bring in numerous electricity providers, creating a rich environment for comparison shopping. In Alberta, the push for consumers to leave the Rate of Last Resort encourages exploration of competitive rates, where private energy companies offer a wide variety of plans. For sales consultants, these competitive markets mean a flood of potential customers who need help navigating their options.


  3. Limited Windows of Opportunity: Timing is critical in both markets. Lubbock residents have until February 15, 2024, to choose their electricity provider or risk being automatically assigned to a default, higher-priced provider. Similarly, Alberta consumers will need to reassess their energy plans in 2025 as the new Rate of Last Resort structure is implemented. For energy sales consultants, this limited window of change creates a sense of urgency, motivating consumers to act quickly and secure better deals.


  4. Massive Sales Potential: Both markets offer lucrative opportunities for energy sales consultants. In Lubbock, with every resident needing to choose a provider, consultants can secure large commissions by helping customers switch. The same applies to Alberta, where consultants can generate significant business by moving consumers away from the Rate of Last Resort to more competitive, cost-effective plans. In both cases, the potential for earning is immense, as large segments of the population need to make new energy choices. THE TEAM interviewed Willa Gipson, a Xoom Energy sales consultant from Lubbock Texas about her experience with the growth in her energy sales portfolio.



Opportunities for Energy Sales Consultants

  • Customer Education and Guidance: As these markets shift, customers will look for trustworthy advice. Energy sales consultants can play a crucial role in explaining the benefits of competitive rates, the difference between fixed and variable plans, and even renewable energy options. In Lubbock, for example, customers may be unfamiliar with the deregulated landscape, making education key. In Alberta, many consumers may not fully understand that the Rate of Last Resort is not their best financial option, making it essential to clarify the alternatives.


  • Capitalizing on Urgency: The urgency created by these energy events means consumers are more likely to act quickly, providing consultants with a perfect opportunity to drive conversions. Highlighting the risks of inaction—like being assigned a higher-rate default provider in Lubbock or paying more on the Rate of Last Resort in Alberta—can prompt customers to engage with a competitive energy retailer.


  • Lucrative Commissions: With large customer bases needing to make decisions, sales consultants can expect a spike in business. In Lubbock, the entire city must choose a new electricity provider, creating a tidal wave of customers looking for the best rates. In Alberta, with less than 30% of residents remaining on the RRO in late 2023, consultants can help those still on regulated rates transition to more affordable options. These events offer the chance to earn an annual salary in a short period, as energy consultants connect consumers with better deals.


Conclusion: Seizing the Opportunity

The shifts happening in Lubbock and Alberta are not just regulatory changes—they’re openings for energy sales consultants to engage with customers at a critical moment. By focusing on customer education, acting with urgency, and capitalizing on the competitive market influx, energy consultants can unlock significant sales potential. Both markets present opportunities to help customers save money and, in turn, generate substantial commissions in the process.


If you’re in the energy retail industry, now is the time to sharpen your skills and prepare for the flood of potential customers in these dynamic markets!




THE TEAM

Alberta's Most Experienced Energy Consultants

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