When competitive rates go lower than the regulated option, the switching incentive grows in Alberta. This means there are more and stronger (mainly financial) reasons for consumers to shop for a new energy plan.
Although more than 80% of Albertans are on competitive energy plans – be it fixed or floating –, switching off the Rate of Last Resort (RoLR) to a new retailer isn’t a simple decision for many. There is a wide range of factors that incentivize people to switch retailers, and these are growing at a fast pace in the province, according to a 2026 report by the Market Surveillance Administrator (MSA).
The switching incentive can also work as a way to measure what Albertans consider before switching energy providers, and the weight these factors have in their decision.
The main reasons why consumers switch energy retailers in Alberta
For many RoLR consumers, switching may have a cost: their time and effort. According to the MSA, if a RoLR customer does not expect to recoup their search and switching costs as savings on their electricity bills if they switch to a competitive retailer, they may choose to stay on the RoLR. In other words, the financial incentive needs to be very apparent. Otherwise, some consumers may not see it as beneficial enough.
That may explain why consumers have switched at a record-high pace in recent years, as the switching incentive kept growing in Alberta. For the 2025-2026 RoLR term, fixed and floating rates continued to decrease while the RoLR stayed at around 12 cents/kWh. This made the switching incentive increase over time.
Below, we’ve detailed how the switching incentive changes over time, as well as how it increased from 2025 to 2026. This metric may be higher or lower depending on the scenario, so we’ve described below multiple different settings and the incentive levels in them.
Switching incentives in different scenarios
In January 2025, the competitive 1-year fixed-rate switching incentive for average RoLR customers in the Calgary area was $17/month, about $204 in savings over the course of the year. By the end of 2025, this increased to $28 (around $336 in a year) and continued at this level by March 2026.
For non-apartment consumers, the incentive was even bigger, getting to $36/month in March 2026, about $432 of savings in a year.
In some cases, like longer contracts (such as 5-year fixed rates) for apartment customers, the switching incentive was smaller and stable from 2025 to 2026. Still, if you were to calculate that difference over the course of five years, that would mean about $600 in savings.
According to the MSA, an average residential RoLR customer living in an apartment in the Calgary area could expect to save approximately half of the amount that an average residential RoLR customer living in other forms of housing could expect to save by switching to a competitive fixed-rate contract.
Comparing energy bills in Alberta
If you’d like to get the most out of Alberta’s deregulated energy market, comparing energy providers and reviewing plan options is the right way to start. This way, you can evaluate if it makes more sense to stay under the RoLR or move to a fixed- or floating-rate plan.
Choosing different energy plans may result in completely different energy bills. That’s why platforms like EnergyRates.ca can help you save a lot on energy bills. We are Canada’s #1 energy rate comparison website and are 100% unbiased. We list the major retailers in your area, so you can compare all the important plan details in a single place, including energy rates, administration fees, the total retail fee/kWh or GJ, as well as plan terms and cancellation policies/exit fees.
All you have to do is enter your postal code in the form above and select the energy service (electricity or natural gas) to see all the available energy options in your area. We can also provide commercial and industrial energy consumers with free, custom quotes based on their operations and energy needs.
