Whether you are looking at residential or commercial, energy rates are important. When running a small business, the wrong energy rate plan can make or break your company. It can also mean the difference between owning and renting your home. However, when working through the budget to figure out how much energy you can afford, it is important to remember that you aren’t restricted to a single, one-size-fits-all rate. There are a lot of options when it comes to choosing the best energy suppliers in Alberta, but there are a lot of variables to consider, too. Here are a few tips that can help you narrow down your list of energy providers until you find the best one for you.
Know your needs
Knowing your energy needs is the most important part of finding one of the best energy suppliers in Alberta, and that extends beyond figuring out whether you are looking for natural gas, electricity, or green energy solutions. You also need to know how much energy you consume on average. This will help you determine which of the rate plans available will provide the greatest benefit to you.
What’s the difference among the many rate plan options?
Since Alberta began to deregulate its energy market, suppliers of electricity or natural gas in Alberta have been divided into two basic groups: regulated and competitive. Depending on your energy consumption needs, either of these options may prove the most beneficial to you.
Regulated prices were determined by the current market rate. These prices varied between geographic regions, and also varied on a month-to-month basis; however, they did not require you to lock into an agreement with your provider, and they provided the most flexibility if you were new and were unsure of your average monthly consumption, or if you were planning to expand your home or business or incorporate green energy options in the future. Regulated rate options enabled a level of flexibility that ensured you didn’t get caught paying for more than the energy you were consuming.
The regulated option wasn’t the most practical of options for everyone, though. If you consumed large amounts of energy, if you consumed steady amounts of energy, or if you simply wanted to avoid market fluctuations, a competitive rate option may have been better for you. Prices for the regulated rate option (RRO) reached high levels in 2023. In August, the RRO peaked at an average of ¢31.486/kWh.
The Rate of Last Resort (RoLR), which came into effect on January 1, 2025, is the replacement for the (RRO). The RoLR rate will be set every two years for a fixed term rather than on a monthly basis. Additionally, at the end of each term, the rate can only adjusted by a maximum of 10%. The RoLR was developed to improve the affordability and predictability for consumers on Alberta’s regulated electricity plan. Another goal was to help consumers better understand their energy options.
To learn more about the RoLR, check out our in-depth guide here.
Know who to consult to help you make the tough decisions
There are a lot of variables involved in locating the best energy suppliers in Alberta—the decision you’ll be making is akin to the decision you make when choosing where to invest your finances. It isn’t an easy decision, so it’s important to remember that you don’t have to make it alone. Visit us at Energyrates.ca and we can give you the information you need to compare the best energy suppliers in Alberta—and we can go over your needs to make sure you are choosing the rate plan that will help you mitigate the most risk, and offer you the highest advantage.
