Alberta Default Electricity Rate IS the Rate Of Last Resort (ROLR)
November, 2024
Alberta’s Government has a loud and clear message for ALL electricity customers currently on the default Regulated Rate Option (RRO) or planning to switch to it after ENMAX’s exit from the commercial energy space. As of January 2025, the provincial government is set to rename the default electricity rate from Regulated Rate Option (RRO) to Rate of Last Resort (ROLR).
The message is clear; do not hope and wish for the ‘last resort’ price plan to help your business’s bottom line.
What is the Regulated Rate Option (RRO)?
The default RRO rate fluctuates each month based on market electricity prices in Alberta, which depends on the forecast supply and demand across the province. This means the RRO rate can rise or fall depending on market conditions and therefore, RRO bills vary each month. Monthly, the Alberta Utilities Commission (AUC) reviews and acknowledges the rates charged for RRO service, determined in accordance with utilities’ approved energy price setting plan.
Proposed Changes
The provincial government is aiming for the proposed changes to come into effect by January 2025. The proposed changes include:
- Renaming the default electricity rate from the Regulated Rate Option (RRO) to the Rate of Last Resort (ROLR)
- Setting default electricity rates every two years
- Requiring default utilities to confirm with their customers within 90 days of providing services whether they’re choosing to sign a competitive rate contract or staying on the default ‘last resort’ rate plan
What Next?
If your business is listening closely and planning to switch electricity supply to a more cost-effective plan, our team of energy experts source the lowest electricity rates, tailored to your businesses’ unique usage trend. We help your business make an informed energy decision at no cost to you. For a seamless transition, send us an email to info@dreamenergysolutions.ca or call us at 833-968-7674.