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Understanding the Rate of Last Resort

The Government of Alberta has made changes to the default electricity option that impact customers on the Regulated Rate Option. Here’s what you need to know!

 

What is the Rate of Last Resort?

As of January 1, 2025, the Rate of Last Resort will be the default electricity option in the province of Alberta. The Rate of Last Resort is available for consumers who cannot or do not choose to get their electricity from a retailer. 

 

Are there other options available?

Absolutely, and understanding your energy choices is important. Alberta has a unique competitive electricity market, which gives Albertans the power to choose the best energy provider, plan, and payment option to fit their needs. Albertans are encouraged to explore their options and find the rate best-suited to their needs.

Regulated rate customers are free to purchase their electricity from a retailer of their choice. For a list a retailers, visit ucahelps.alberta.ca or call 310-4822 (toll free in Alberta).

 

How is the Rate of Last Resort different than the Regulated Rate Option?

The Rate of Last Resort will be a fixed rate, from January 1, 2025 to December 31, 2026, while the RRO is a floating rate that fluctuates each month based on market conditions. The Rate of Last Resort may be adjusted up or down by a maximum of 10% following each two-year period. 

 

What is the price for the Rate of Last Resort?

The specific rate has not yet been determined. The Rate of Last Resort will be decided through processes with the Alberta regulatory authorities, and the rates will be different in each area of the province. 

 

Will there be any new or additional fees with the RoLR?

Included in the Rate of Last Resort energy rate will be a 0.1¢ per kWh consumer awareness surcharge. This charge will go directly to the Utilities Consumer Advocate (UCA) who will regularly contact Rate of Last Resort customers to inform them of their electricity options. Rate of Last Resort customers’ full names, phone numbers, email addresses and mailing addresses will be shared with the UCA for this purpose every 2 months following the implementation of the Rate of Last Resort. All other fees and charges will still apply. 

 

How do I know if I am on the Rate of Last Resort?

The Rate of Last Resort does not come into effect until January 1, 2025. If you are on the RRO and do not take any action, you will automatically be switched to the Rate of Last Resort on January 1, 2025. If you have not enrolled in a retail electricity agreement, you are likely on the Regulated Rate Option. Check your electricity bill to see if it says “RRO” or contact your electricity retailer if you are unsure.

 

What do I do if I’m struggling with my utility bill? 

Albertans who are looking for help with their utility bills should contact the Utilities Consumer Advocate at 310-4822 or through their website, or visit our website to find resources at enmax.com/affordability.