What is the Rate of Last Resort?
Starting January 1, 2025, Alberta is introducing the Rate of Last Resort (RoLR) as the new default electricity rate. It will replace the Regulated Rate Option (RRO) and apply to anyone who hasn’t chosen a competitive energy plan.
All About The Rate of Last Resort
Why is This Change Happening?
The Rate of Last Resort provides more stability and predictability than the RRO. With a fixed rate for two years, it also gives consumers time to explore competitive electricity options while still offering a reliable default choice.
How Does the Rate of Last Resort Work?
- The rate is reviewed and approved by the Alberta Utilities Commission (AUC) every two years.
- Any changes to the rate are capped at 10% per review cycle to avoid large price swings.
While the RoLR offers predictability, there’s a chance the rate could adjust within the two-year period if providers face financial challenges.
How Will This Affect Me?
- If you’re on the RRO now, you’ll automatically switch to the RoLR.
- For new customers who don’t choose a plan, the Rate of Last Resort will apply by default.
Important: The RoLR includes additional fees, which may result in higher electricity bills for some customers.
How Can I Check If I’m on the RoLR?
- Look at your electricity bill for “Rate of Last Resort” or “RoLR.”
- Compare your current rate to the RoLR to confirm.
Your Options
Alberta has a competitive electricity market, so you can choose a plan that works best for you. Retailers offer flexible options, including fixed-rate plans that guarantee prices won’t change during your contract.
Exploring these options can provide:
- Lower rates
- Greater stability
- Customized payment plans
Know Your Choices
While the Rate of Last Resort is a reliable safety net, Alberta’s competitive market gives you the power to choose. Take control of your energy costs by finding a plan that suits your needs.