*Disclaimer: On April 18, 2024, the Alberta government announced the RRO would be renamed to the Rate of Last Resort (RoLR). The proposed change was done to provide more clarity to electricity consumers and encourage them to explore other retail energy options. The RoLR will be set at a fixed rate every two years rather than month-to-month as was the case for the RRO. The RoLR came into effect on January 1, 2025. We have updated certain sections of this article with the term RoLR.
To learn more about the RoLR, check out our in-depth article.
There are a lot of factors that can influence energy rates—but what about geography? Can location and city structure dictate high or low when you compare energy rates in Calgary?
LEARN MORE: Factors That Affect The Cost of Electricity in Canada
Calgary is the largest city in Alberta, and the heightened head count of a city that houses close to 1.25 million people provides a lot of benefits for energy providers. But can that increased population mean Calgary is getting a better deal on its energy than other cities nearby? Potentially, yes; however, there are a number of other contributing factors that come into play when you compare energy rates in Calgary. For instance, Calgary was built by the petroleum and energy industries. Its largest energy company, ENMAX, is actually an owned subsidiary of Calgary, too, and both of those factors contribute to the city’s regulated rate, the Rate of Last Resort (RoLR)*.
Calgary’s city-owned energy provider has some effect on local energy rates.
The fact that the city owns its own energy provider—one that is as large in scale as ENMAX—means the city has more control over its energy rates, and those rates can thus exist separate from the fluctuations and increases of rates in the surrounding area. Further, the fact that Calgary was built by the energy industry means it has a lot of access to its own resources, and the surplus of those resources means there are a lot of energy providers available—and thus a lot of incentive between providers to keep those prices competitively low for consumers as they compare energy rates between those Calgary providers.
Calgary’s regulated rate, formerly known as the RRO, as controlled by ENMAX, for electricity use was set on a monthly basis. In 2023, the average regulated rate in Calgary was ¢22.677/kWh. In August 2023, the RRO in Calgary hit ¢32.425/kWh, a record high.
In comparison, Edmonton’s average RRO for electricity was ¢23.89/kWh in 2023. In August 2023, it hit ¢32.539/kWh in Edmonton.
At that time, fixed-rate plans available in both cities averaged ¢10.963/kWh.
Calgary’s floating electricity rates usually fall between ¢1+pool price and ¢1.5+pool price/kWh. Natural gas rates vary as well.
For all the complexity, it may seem like the obvious choice when it comes to choosing between Calgary’s energy rates is to just choose the lowest.
Calgary’s Local Access Fee
While the Local Access Fee (LAF) does not directly impact Calgary’s electricity prices, it does affect how much Calgarians pay on their electricity bills. Since the late 1990s, Calgary has tied its Local Access Fee to electricity prices. This means the LAF moves with the fluctuations in the electricity market. As a result, the LAF in Calgary is much higher than in other areas in Alberta. In 2023, Calgarians paid an average of about $260 in Local Access Fees, while Edmonton residents paid around $80 for the year.
The City of Calgary has taken steps to stabilize the Local Access Fee. In March 2024, the Government of Alberta announced that the Local Access Fee in Calgary will be restructured. The goal is to make energy bills more affordable and less volatile. The update will come into effect as of January 2025.
Learn more about the changes here.
However, when choosing between energy plans, you have to look at more than just the price.
When it comes to comparing energy rates, you also need to compare the details of the plan. While the RoLR* may seem like the obvious choice, the fixed rate option can offer protection from market fluctuations that will leave you vulnerable to spikes in rates.
In order to effectively choose the rate plan—whether natural gas electricity, or a combination of traditional and green energy—you need to know your needs so you can identify the specifics of each plan that will work best for you.
LEARN MORE: Why Alberta Electricity Bills are Getting Higher — and What you can do About it
