The Big Question Every Albertan Faces
When you’re choosing an energy plan in Alberta, the first decision is usually: fixed rate or variable rate? Both have advantages, and the right choice depends on your risk tolerance, budget, and how closely you want to watch the energy market.
Here’s a straightforward breakdown to help you decide.
What Is a Fixed Electricity Rate?
A fixed rate locks in your price per kilowatt-hour (kWh) for a set period — usually 1 to 5 years. No matter what happens in the wholesale electricity market, your rate stays the same.
Pros:
- Predictable bills — you know exactly what you’re paying per kWh
- Protection from price spikes (Alberta’s wholesale market can be volatile)
- Easier to budget, especially for families and fixed-income households
Cons:
- If wholesale prices drop, you’re still paying the locked-in rate
- Some contracts have early cancellation fees (though not all — Get Energy’s plans have no cancellation fees)
What Is a Variable Electricity Rate?
A variable rate changes monthly based on the wholesale market price. The most common variable option in Alberta is the Regulated Rate Option (RRO), set by your local utility. Competitive retailers also offer their own variable plans, often at a lower markup.
Pros:
- Can be cheaper than fixed during low-demand periods
- No long-term commitment — switch anytime
- You benefit when wholesale prices drop
Cons:
- Bills fluctuate month to month — harder to budget
- During cold snaps or high-demand periods, prices can spike significantly
- The RRO has historically averaged higher than competitive fixed rates over time
How Do They Compare in Real Numbers?
Let’s look at a typical Alberta household using about 600 kWh per month:
| Rate Type | Rate (¢/kWh) | Monthly Cost | Annual Cost |
|---|---|---|---|
| Fixed (competitive) | 7.25¢ | $43.50 | $522 |
| Variable (RRO avg) | ~9-12¢ | $54-$72 | $648-$864 |
| Variable (competitive) | Market + small fee | Varies | Varies |
Note: These are supply charges only. Your total bill also includes delivery, transmission, and other regulated charges that are the same regardless of provider.
When Does Fixed Make Sense?
- You want predictable bills and easy budgeting
- You believe wholesale prices will rise (or you just don’t want to think about it)
- You’re on a fixed income or tight budget
- Current fixed rates are at a historical low point
When Does Variable Make Sense?
- You’re comfortable with fluctuating bills
- You actively monitor energy markets
- You believe wholesale prices will stay low or drop
- You want maximum flexibility to switch plans anytime
What Most Albertans Choose
The majority of Albertans who actively switch providers choose fixed rates. The peace of mind of knowing your rate won’t change is worth a lot — especially after experiencing the price volatility Alberta saw in recent years.
Get Energy currently offers a fixed electricity rate of 7.25¢/kWh with no cancellation fees. That means you get the stability of a fixed rate with the flexibility to leave anytime.
The Bottom Line
There’s no universally “better” option — it depends on your situation. But if you value predictability and protection from price spikes, a competitive fixed rate is hard to beat. And if you want flexibility, look for a variable plan from a competitive retailer rather than defaulting to the RRO.
Either way, the worst thing you can do is nothing. If you’re still on the default RRO, you’re almost certainly paying more than you need to.
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