When you’re looking for the lowest electricity rates in Calgary, the most important thing to remember is that energy consumption rates don’t come in a one-size-fits-all package. Ever since Alberta’s electricity providers began deregulating the energy market in 1996, electricity rates have gotten a lot more competitive, and higher competition means they’ve also gotten a lot more consumer-friendly—and that carries a lot of benefits for you.
What are the benefits of a deregulated energy market?
Having access to a deregulated energy market means your options are flexible. A deregulated market means electricity providers can compete with one another to try to get the most business, and in order to do that, they not only need to keep more competitive rates, they also need to shape the market itself to meet the needs of the consumer. This means the consumer can choose the lowest electricity rates in Calgary, and also choose the electricity plan that best suits their needs.
What are your electricity options?
The Rate of Last Resort
Regulated electricity retailers are specific to their geographic location and have a set rate for a two-year term. At the end of the term, the rate can only be adjusted by 10%. This structure helps keep the Rate of Last Resort (RoLR) price stable, affordable, and somewhat predictable. Previously, the Regulated Rate Option (RRO) was tied to market prices for electricity, which changed month to month. As a result, the RRO was susceptible to price fluctuations. In 2023, the RRO reached high levels, particularly in the summer. In August 2023, the RRO peaked at an average of ¢31.486/kWh. Prices lowered in 2024. In Calgary, the RRO in October was ¢9.264/kWh, 50.9% lower year to year (¢18.897/kWh in October 2023). Because of the price fluctuations, the Alberta Government decided to restructure the RRO and rename it to the Rate of Last Resort. The RoLR came into effect on January 1, 2025.
To learn more about the Rate of Last Resort, check out our in-depth guide.
The Fixed Rate Option
Fixed electricity prices offer advantages when the market isn’t offering the lowest electricity rates in Calgary. Fixed rates can protect you from market spikes, which are especially important when you already have a high rate of electricity consumption. The fixed option enables you to budget your monthly electricity cost since you will sign a fixed-rate contract, and that offers a lot of advantages for both residential and business energy use.
The Variable Option
If you are wary of signing onto a fixed rate but are also leery of market spikes, the best way for you to get the lowest electricity rates in Calgary is the variable or floating-rate, contract. These rates depend on market forces but also offer the lowest possible rates.
Whether you are looking to meet your business or residential needs, you need to know how much electricity you consume, and how consistent your consumption rates are. This will help you to determine if you would be better off with a regulated rate plan or a competitive rate plan.
Remember that it is also important to keep your future plans in mind. If you are planning on some big renovations that will significantly alter your electricity consumption rates, or if you are planning to incorporate green energy solutions in the near future, it is important to choose an energy plan that will allow for the changes that will be affected by your consumption.
If you are wondering which of the options offers the lowest electricity rates in Calgary for your unique needs, contact us at Energyrates.ca. We’ll provide you with the neutral, third-party information you need to make the best choice for your all-energy needs.
