How the RoLR compares to other plans after the first year

In November 2024, the Alberta Utilities Commission (AUC) announced that the Regulated Rate Option (RRO) for electricity would be effectively replaced in January 2025 by the Rate of Last Resort (RoLR). The main idea was to switch from RRO’s monthly-fluctuating prices to offer two-year price stability with a maximum 10 percent adjustment at the end of each term.

The informed rates for the Rate of Last Resort (RoLR) for the 2025-2026 term were:

• EPCOR (12.01 cents/kWh),
• ENMAX (12.06 cents/kWh),
• and Direct Energy Regulated Services (DERS) (12.02 cents/kWh).

According to the Government, the initiative aimed to help Albertans better understand their energy bills, retailer and plan options, and to encourage residents to compare competitive fixed-rate plans for lower prices and less volatility.

One year after the Rate of Last Resort (RoLR) announcement, Albertans can have a clearer view of which plans are more or less affordable and how they compare, considering the extreme weather conditions during the year (both deep freezes and heatwaves) and the historical data for the previous two years.

By comparing extreme weather conditions in summer and wintertime, it is possible to have a clear picture. In August 2024, for example, the EPCOR electricity rate in the Edmonton area was 13.195¢ for residents under the (RRO), while those who chose the Fixed-Rate plan paid 9.79 cents/kWh. In December of the same year, the RRO was 11.606 cents/kWh while fixed at 8.97 cents/kWh. This was before the change (RRO to RoLR).

For the 2025 comparison, the RoLR price for the same area was set at 12.025 cents/kWh, while the average fixed-rate plan was 8.63 cents/kWh, with some plans being offered below average. This means competitive plans were about 39.34% lower than what RoLR customers paid.

In the graphic below, we can see how both regulated and competitive fixed plans differed in the two years prior to 2026.

Understanding the Purpose of the Rate of Last Resort

As we said before, the Rate of Last Resort was created in response to instability in Alberta’s competitive electricity market, particularly following periods of extreme price fluctuations. Its core purpose is not to replace competitive retail offerings, but to act as a safety net. According to the Minister of Affordability and Utilities at that time, Nathan Neudorf, the name change would provide more clarity to electricity consumers and encourage them to explore other retail energy options

On one side, customers placed on the RoLR are guaranteed uninterrupted electricity service at a regulated price structure set through oversight rather than market negotiation. In that sense, the RoLR provides reassurance and short-term protection, especially for consumers who did not actively choose a new retailer during a transition or couldn’t get credit approval for a competitive plan.

However, every two years, the RoLR rate is recalculated periodically and reflects prevailing market conditions, along with administrative and risk components (energy market, supply, and demand balance, for example). While this approach offers oversight and transparency, it also means that customers remain relatively exposed to future and past changes in wholesale electricity prices. If, for example, market prices go down, as they did in 2025, consumers would only notice potential price decreases in one or two years.

Fixed-rate plans, by contrast, are structured around long-term price certainty. By locking in a single energy rate for a defined term, customers effectively transfer market risk away from their monthly bill. Also, because of the flexibility of exit, consumers under such plans can respond to price decreases and sign up for lower prices without having to wait for the end of the term. Over the past year, this distinction has become more relevant as Alberta’s electricity market prices continued to decrease.

Fixed rates vs RoLR in 2025

Alberta’s electricity system is built on competition, with the expectation that consumer choice drives innovation and efficiency. In that context, the RoLR functions as a default option rather than an optimized one. Thus, Fixed-Rate plans are the result of active choice. Retailers compete on pricing, contract length, and customer experience, which can create opportunities for consumers to select plans aligned with their priorities and more budget-friendly.

Below, you can see how both fixed and regulated plans changed over the course of 2024, as well as in 2025, when the RoLR became active.

In the table above, it is possible to see that the average fixed rate was lower than the RoLR for the entirety of 2025. Not only that, but the difference between the two plan types increased over the course of that year. In December 2025, for example, some fixed-rate plans were being offered at 7.57 cents/kWh, which is about 58.6% lower than the lowest RoLR price.

What about floating rates?

Although we only compared RoLR with the Fixed-Rate option, as they are the most similar when we compare the available plans in Alberta (Fixed and RoLR), there is another option (floating rates), which is variable and follows current market conditions. 

Volatile and unpredictable, such plans can offer the most savings when prices are really low, but they can also present price spikes when the market is trending upwards. In the previous years, floating rates got as high as around 32 cents/kWh and as low as 5 cents/kWh. That’s why they are more suitable for energy consumers with higher risk tolerance.

Comparing energy rates in Alberta

At EnergyRates.ca, we can assist you in comparing electricity and natural gas rates in Alberta, Ontario, Saskatchewan, British Columbia, Québec, and Manitoba. Our website is free and impartial in listing the major energy suppliers in each province and providing an overview of available energy rates.  

Whether commercial, large commercial, or industrial electricity and natural gas consumer, to find out if you could be paying less even during summer heat spikes or during deep freezes, start by filling out the form above.