The Affordability and Utilities Minister Nathan Neudorf announced on Feb. 4, 2025, a provincial ad campaign to raise awareness and inform Albertans under the Rate of Last Resort (ROLR) of their options, as well as incentivize consumers to switch to competitive options.
Some of the campaigns planned by the province include:
- All providers will have to clearly indicate on customers’ utility bills if they are on the Rate of Last Resort and inform them of their competitive retail market options.
- Every 90 days, the Utilities Consumer Advocate will contact all ratepayers on the Rate of Last Resort, confirm whether they would like to remain on the default rate and encourage them to explore their options.
Although the announcement didn’t necessarily present new information, the provincial approach this time made it very clear that the government doesn’t want Albertans to feel like the default option is the most cost-effective one.
The event’s official press release was titled “Don’t default to the Rate of Last Resort”, and some of its content included sentences like “Competitive retail contracts continue to provide the best, lowest cost options for Albertans.” This is quite different from the tone from years ago when the regulated rate option would be presented as a possibility, not something to be strongly avoided.
As of January 1, each distributor started collecting a consumer awareness surcharge of 0.1 cents/kWh for each ROLR 2-year term. The purpose of the surcharge is to support initiatives led by the UCA to inform regulated rate customers about their electricity service options.
Why this matters: Over the years, the previous default option, the RRO, was presented as a safety net for consumers. It would often sound like a safer or even cheaper option for consumers. With the new ROLR awareness campaign, the province is officially stating that the default option is (and probably will continue to be) more expensive while encouraging energy customers to explore their electricity options. It actually stated a household could save hundreds of dollars on energy bills in a year by switching energy suppliers.
The current ROLR rates are about 29% higher than the average fixed-rate plan in Alberta right now (9.32 cents/kWh.), as of February 2025.
Who is on the ROLR and who isn’t?
Most Albertans are under a competitive energy retailer plan. In some parts of the province, the competitive market share is above 80% of customers.
Approximately 26% of residential customers purchase electricity through the Rate of Last Resort, according to the province. Approximately 29% of eligible commercial customers and 40% of farm customers purchase electricity through the Rate of Last Resort.
However, every month, new Albertans and first-time ratepayers join the Rate of Last Resort as it is the default option. For example, in Q2 2024, around 50,000 residential customers left the then Regulated Rate Option while approximately 43,000 customers joined it, according to a Market Surveillance Administrator (MSA) report from November 2024.
The announcement was conducted at the Centre for Newcomers in Calgary. According to the province, new Albertans and first-time ratepayers make the most of the consumers under the Rate of Last Resort right now.
What about people with bad credit?
One of the big concerns regarding the Rate of Last Resort was that it could make it even harder and more expensive for consumers who simply can’t leave the ROLR due to poor credit.
There are a couple of possibilities available right now. Here on EnergyRates.ca, we have a guide on how low-credit or low-income Albertans can obtain financial assistance with their electricity and natural gas bills, including both governmental programs and private organizations.
Some competitive retailers have specific plans and/or conditions for consumers with bad credit. So, if there is a retailer plan that interests you, it’s worth it to research their options or even call to understand if they have something that fits your financial situation.
The UCA Helps also has a contact line for Albertans who have questions about their bills or need financial assistance. Below you can find their phone number and email address:
Compare Alberta energy rates
If you’re looking to compare your Alberta energy options, we can help you here at EnergyRates.ca. We are Canada’s leading energy rate comparison website, and we list all the licensed electricity and natural gas retailers in the province. We allow you to compare not only the advertised retail rate but also their admin fees and the total retail fee/kWh.
Enter your postal code in the form above to compare your options and see if you could be paying less on your energy bills. Our team of experienced energy experts can also help small, medium, large and industrial businesses get a custom energy quote based on their energy needs.
