Understanding the Rate of Last Resort (RoLR) in Alberta

On January 1, 2025, the Rate of Last Resort (RoLR) will replace the Regulated Rate Option (RRO) for electricity customers in Alberta. Here are answers to frequently asked questions about this significant change.

Why the Change to RoLR?

The shift to the RoLR aims to offer more stability and predictability for customers who were previously on the regulated rate. This change is also designed to raise consumer awareness of available options that provide greater value, such as Xoom Energy.

How the RoLR Works

The Alberta Utilities Commission (AUC) reviews and approves the RoLR. This rate will remain fixed for two years. After this period, the rate is reassessed. Any proposed adjustments are capped at a 10% increase from the current rate.

What to Expect from UCA Communications

Customers on the RoLR will receive notifications from the Utilities Consumer Advocate (UCA) at least once every 90 days via email or traditional mail. The Alberta government is committed to ensuring customers are constantly reminded that they are on the RoLR, which offers the worst rate in Alberta. These persistent notifications encourage customers to explore competitive electricity plans. The government emphasizes that staying on the RoLR is not the preferred long-term choice.

While no action is required upon receiving these notices, it is clear that Albertans are encouraged to actively seek alternatives. The government is promoting the idea that moving away from the RoLR can lead to better options that save money.

Understanding the Impact

The RoLR affects a broad range of customers, including residential, small business, and farm customers previously on the RRO. New electricity customers who do not choose a competitive plan will automatically be placed on the RoLR.

Checking Your RoLR Status

To determine if you are on the RoLR, check your electricity bill. It will indicate “Rate of Last Resort” or “RoLR.” This clear labeling helps customers identify their current rate structure.

Current RoLR Rate Information

To find the RoLR rate effective from January 1, 2025, to December 31, 2026, visit the Alberta Utility Commission website or consult with an experienced energy consultant.

RoLR vs Natural Gas Rates

It’s essential to note that the RoLR only applies to electricity. Customers who are on the Default Rate Tariff for natural gas will not be affected by this change.

Stopping RoLR Notifications

Customers cannot opt out of RoLR notifications. According to regulations, customers on the RoLR must receive these updates at least once every 90 days. This requirement ensures that all customers are kept informed.

Changing Electricity Providers

If you’re considering a switch from the RoLR, the best approach is to consult with an experienced energy consultant. They can provide answers to your questions and help you transition smoothly to a better service that offers more value.

How UCA Obtains Contact Information

Under UCA Regulation, retailers are required to share customer information with the UCA. This process allows for consistent communication and ensures that customers are kept informed about their electricity options.

Should You Leave the RoLR?

Switching from the RoLR is not mandatory. However, it is recommended because the RoLR is often seen as the worst possible option for consumers. Exploring other plans can lead to significant savings and better service.

What If You Receive a Notification in Error?

If you receive a notification but don’t believe you are on the RoLR, contact an experienced energy consultant. They can clarify your status and outline your options based on your energy provider.

Current Statistics on RoLR Users

The number of customers on the RoLR fluctuates each month. Currently, around 26% of residential customers, 29% of commercial customers, and 40% of farm customers purchase electricity through the RoLR. These statistics highlight the extent of the impact the RoLR is having on Alberta’s energy market.

Transitioning Away from the RoLR

Good news: there are no fees associated with leaving the RoLR. Customers can switch to a competitive plan at any time without facing penalties. This flexibility is vital for those who wish to secure better rates and services.

Who is THE TEAM?

We are a team of energy consultants who entered the retail energy industry in 2016. Unlike call center employees, we treat every customer like a valued individual. Our group consists of local entrepreneurs in your area, committed to helping people find more value in their energy options.

We believe in transparency and nurturing long-term relationships with our customers. With a vigilant eye on long-term commodity pricing forecasts, we are here to help you explore your energy options with a focus on achieving long-term value.

THE TEAM

Alberta's MOST Experienced Energy Consultants