*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 will come into effect on January 1, 2025. We left information on the RRO for historical purposes.
To learn more about the RoLR, check out our in-depth article.
Whether you are a business owner, manager, or employee, recessions can pose more than a little challenge. However, the problem lies in more than just the threat of having less income coming in. A recession means you never know when that income might stop coming in completely. And that insecurity can apply to more than just your place of employment. It can also make your utilities a lot more unpredictable, too—especially since Alberta’s current recession is directly tied to the oil and gas industry.
This means the cost of your gas and electricity use might go on a bit of a roller coaster, and with the added precariousness of your own economic uncertainty, this rate fluctuation might leave you with a bit more than frustration. There is a way to protect, if not prepare, yourself against these fluctuations though: by searching for the cheapest electricity and gas rates available in Lethbridge, Alberta.
Why “fixing” your rate might be an advantageous way to go
When searching for the cheapest electricity and gas rates, it’s important to know your options. Ever since the deregulation of the energy market, gas and electricity providers have been sculpting their plans to make them more appealing to consumers. This means you have a lot more choices and even a lot more flexibility than you may have thought possible. Of course, this means finding the cheapest electricity and gas rates isn’t just about picking the provider with the lowest rates anymore. Now it’s about finding the provider that has the plan that best suits your energy needs.
So what are your options?
Essentially, the cheapest electricity and gas rates break down into two different groups: fixed, or regulated rates. The RRO* doesn’t require you to lock it at any particular rate. Instead, you get the market rate, and your bill will drop when the market rate drops. This can have a lot of benefits, especially for businesses that are just starting up and haven’t determined their average consumption, or for businesses or homes that are planning to renovate or expand and are looking at higher rates in the future. RRO can ensure you don’t end up paying extra fees for exceeding your usage limits. The downside of the RRO is that during times of economic and industry-specific uncertainty, those rates may spike, which means your bill may suddenly become a lot more unpredictable.
That’s where the fixed rate option comes into play. The fixed rate option allows you to lock yourself into the cheapest electricity and gas rates you choose for the length of your term, which means even when market rates spike, your rate remains stable. While it can seem a little daunting to sign that contract, it’s important to remember that you still have a lot of options, which means you can choose the fixed rate plan that will work best for your energy consumption needs, whether you are a large corporation, a small or start-up business, or a homeowner. Some energy providers even cater specifically to large or small business needs, and some provide you with a combination of fixed and flexible rates using structured blocks.
The real secret behind getting the cheapest electricity and gas rates is simple: just look around. Compare the different energy providers catering to the Lethbridge energy market to find the rate plans that work best for you.
