Our government is taking decisive steps to shield households, businesses, and farms from electricity price instability by implementing key changes to the Rate of Last Resort (formerly known as the Regulated Rate Option or RRO).
These new regulations, effective Jan. 1, 2025, are designed to offer greater stability and transparency, benefiting approximately 419,000 households currently relying on this pricing model.
The Rate of Last Resort acts as a safety net for consumers who haven’t entered into competitive electricity contracts.
Currently, 26 per cent of Alberta’s residential customers, 29 per cent of eligible commercial customers, and 40 per cent of farm customers receive their electricity through this rate.
While the Rate of Last Resort safeguards those who cannot or have not signed a competitive contract, our government is encouraging consumers to explore alternatives that may provide better long-term savings.
To further support Albertans in evaluating their energy options, a new rate confirmation process will be introduced.
Every 90 days, the Utilities Consumer Advocate (UCA) will contact customers on the Rate of Last Resort to confirm if they wish to stay on it or consider alternative offers.
This proactive approach empowers consumers to explore competitive offers from over 50 electricity retailers offering both fixed and variable rates. Additionally, electricity providers will now be required to clearly indicate on bills when customers are on the Rate of Last Resort, and service agreements will be updated with clearer terms and conditions.
This enhanced transparency ensures consumers are better informed and engaged in managing their electricity choices.
For Albertans who may face challenges transitioning to a competitive contract, our government is committed to ensuring the Rate of Last Resort remains stable and predictable.
Starting in 2025, the Rate of Last Resort will be fixed for a two-year term, protecting consumers from unpredictable price spikes. Furthermore, any changes to the Rate of Last Resort between terms will be capped at a maximum of 10 per cent, providing greater financial security for those who continue to rely on this option.
Alberta’s competitive retail electricity market offers significant choice, allowing consumers to opt for fixed or variable-rate contracts from private retailers.
However, for those staying on the Rate of Last Resort, these new regulations provide peace of mind with a more predictable and controlled rate.
It’s essential for all Albertans to explore their electricity options to ensure they’re on the rate that best suits their needs.
Last year, tens of thousands of Albertans transitioned off the Rate of Last Resort to competitive contracts, often securing more affordable rates.
The government urges all consumers to make informed decisions and take advantage of the wide range of competitive options available to them.
For those needing assistance in understanding their options, the Utilities Consumer Advocate is available to offer support.
Whether it’s learning more about the Rate of Last Resort or exploring competitive contracts, the UCA serves as a valuable resource for Alberta’s ratepayers.
These upcoming changes highlight our commitment to protecting consumers and fostering a transparent, competitive electricity market.
By empowering Albertans with information and offering more stable, predictable options, the government is working to keep utility costs manageable and secure for the long term.
- MLA Jackie Lovely can be contacted at her constituency office located at #104, 4870 51 Street, Camrose AB, T4V 1S1, or by telephone at 780-672-0000.
