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RRO changes to Rate of Last Resort (RoLR) in January 2025

Updated on November 1, 2024

4-minute read

RRO changes to Rate of Last Resort (RoLR) in January 2025

Updated on November 1, 2024

4-minute read

The Government of Alberta is changing the default electricity option which is currently the Regulated Rate Option (RRO), to the Rate of Last Resort (RoLR) from January 2025 onwards.

These changes only impact regulated electricity rates and there are no changes being made to regulated natural gas.

Wondering what these changes to regulated electricity rates will be and how it could affect you? Here鈥檚 what you need to know.

Couple sitting on couch looking at papers and female has calculator in hand
Couple sitting on couch looking at papers and female has calculator in hand
Couple sitting on couch looking at papers and female has calculator in hand

What is the Rate of Last Resort?

Starting January 1, 2025, Alberta's Rate of Last Resort (RoLR) will be default electricity rate for customers who have not chosen, or are not currently with, a competitive retailer. This is replacing the Regulated Rate Option (RRO). The rate will continue to change monthly until January 2025 when it will switch to a fixed rate product set every two years.

Why is the Regulated Rate Option (RRO) changing to the Rate of Last Resort (RoLR)?

The Government of Alberta has decided to rename the Regulated Rate Option (RRO) to the Rate of Last Resort (RoLR). The government is concerned that the word 鈥渞egulated鈥 gives customers a false sense of security that the rate is protected. They believe this new name provides a more accurate description of the default electricity rate and will encourage Albertans to explore their other options, such as switching to a听.

How is the Rate of Last Resort different from the RRO?

Unlike the RRO which is a monthly fluctuating rate that adjusts based on the market, the Rate of Last Resort will be set every two years to avoid sudden spikes in pricing for customers.听The Rate of Last Resort will be a fixed rate from January 1, 2025, until December 31, 2026, and can only go up or down by a maximum of 10% every two years.听

Has the price for the Rate of Last Resort been decided yet?

Not yet. The rate is still being finalized with Alberta鈥檚 regulatory authorities and will vary across different areas of the province.

Are there any additional fees with the Rate of Last Resort?

Yes, there will be a small 0.1垄 per kWh surcharge for consumer awareness, which goes directly to the Utilities Consumer Advocate (UCA). This fee helps keep you informed about your electricity choices. To support this, the UCA will get basic contact information for RoLR customers every two months to share updates. Aside from this, regular fees and charges will still apply.

How do I know if I鈥檓 on the RRO?听

Check your electricity bill and if you鈥檙e receiving your electricity charges from 欧美情色 Energy Regulated Services, EPCOR RRO or ENMAX RRO, then you are on the RRO.听

Will I automatically be switched to the Rate of Last Resort (RoLR)?

The RoLR kicks in on January 1, 2025. If you鈥檙e currently on the RRO and take no action, you鈥檒l be automatically switched to the RoLR on this date.听

I鈥檓 on the RRO. What should I do?

Want to get off the RRO and get ahead of the government's changes? Don鈥檛 worry, we鈥檝e got you covered! We offer fixed-rate plans with no exit fees, a combined bill and other promotions. All you need to do is听听or give us a call at 1-855-452-8869.

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

Do I need to switch from the RRO/RoLR?

No, there is no requirement to leave the RRO or RoLR.听

Is the RRO for both electricity and gas?

No, RRO is a term used for regulated electricity only, so regulated natural gas won鈥檛 be affected by these regulation changes.听

While both the regulated natural gas rate and RRO are reviewed and approved by the Alberta Utilities Commission, gas and electricity prices are impacted by different market factors and are set independently. That's why we've noticed lower natural gas prices compared to higher electricity rates in the past year.听Learn more about the benefits of regulated natural gas.

Will my regulated natural gas rate be affected?

If you are on our regulated natural gas rate, you can sit back and relax knowing that you are enjoying the lowest* natural gas rate in Alberta. Plus, our regulated natural gas rate is forecasted to remain lower** than fixed-rate plans throughout 2024!

Learn more听about the benefits of regulated natural gas and how its price is determined.

What are the benefits of a fixed-rate plan?

Signing up for a fixed rate can help you avoid market volatility and ensure financial security through rate stability for as long as you need it. Plus, there are no enrollment or exit fees. When rates go back down or drop below your fixed rate, you can always switch to a market-based rate plan and take advantage of that lower rate. Also, for some, knowing exactly what you'll pay for electricity every month allows you to be financially prepared and offers peace of mind.

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

*Based on an average of the lowest advertised 5-year fixed rates from Atco Energy, EasyMax, Encor, and 欧美情色 Energy as of October 25, 2024.
**Based on 5-year natural gas fixed-rate plans by Enmax, Epcor, ATCO and 欧美情色 Energy from August - November 2024.


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