The Regulated Rate Option (RRO) for Calgary, which applies to all households and small businesses that have not chosen to enter into an energy plan with a retail supplier, will be 7.48 cents per kilowatt hour (kWh), effective August 1, 2006. This price is a slight improvement to the July price of 7.55 cents per kWh.
New provincial regulations mean the RRO may now fluctuate monthly rather than quarterly or yearly as it has in the past. Prices fluctuate with the energy market, depending on changing weather, seasonal consumption demands and fuel costs such as natural gas prices. A new price for the RRO will be announced each month as these fluctuations are incorporated in the price.
The monthly RRO price is determined by a combination of long and short term prices in Alberta’s wholesale electricity market, in a process which is approved by the Alberta Energy and Utilities Board.
This change in regulation increases the importance of consumers examining their own energy cost control choices.
What is a Regulated Rate Option (RRO)?
The RRO is the default option when no choice is made by a consumer. The owner of the local distribution system is required by legislation to provide the RRO to eligible customers (residential and small commercial customers who consume less than 250,000 kWh of electricity each year) in their service area. ENMAX Power is the local distribution company in Calgary. Anyone who has not chosen to enter into an energy plan with a retail supplier receives the RRO by default.
What can customers do?
ENMAX Power, through its RRO provider, is the company responsible for providing the RRO in Calgary and fully supports the competitive market for electricity and consumers' rights to choose their own energy plan.
Customers have options regarding their energy bill. They are:
- Choose to do nothing and receive the default RRO, which may fluctuate each month.
- Choose an energy plan that can offer control over energy costs and fixed prices over longer terms. Information on these is available at www.ucahelps.gov.ab.ca or call 310-4822.
ENMAX provides electricity, natural gas, renewable energy and value-added services to approximately 460,000 residential, commercial and industrial customers in Alberta through its subsidiary companies. For more information, visit our website at enmax.com.
Electricity products and services are competitive. You are free to choose a retailer. Regulated wire services are not dependent upon the retailer you choose. You can find a listing of licensed Alberta retailers at www.ucahelps.gov.ab.ca or call 310-4822.
For more information, read the RRO Questions and Answers page.