Fixed vs Variable Electricity Rate in Alberta: Which Is Cheaper?

Short answer: as of August 20, 2026, variable is cheaper in Alberta — 5.31¢/kWh on a 30-day average versus 6.57¢/kWh for a one-year fixed rate. Variable has also beaten fixed over the last 13 months (5.78¢/kWh average). Fixed is not a worse deal, it is a different product: you are paying roughly a cent a kilowatt-hour for insurance against a bad winter.

Rates on this page update daily from our live rate sheet. Wholesale data from AESO. Last updated August 20, 2026.

The two products, plainly

A variable rate (sometimes called a floating rate) is recalculated every month from a rolling average of the AESO wholesale pool price. You pay close to what electricity actually cost that month. There is no term, no exit fee, and no ceiling.

A fixed rate locks your energy price for the length of the term. The retailer takes the market risk instead of you, and charges a premium for doing it. If the market spikes, you are unaffected. If the market falls, you keep paying the locked rate.

Neither one changes your delivery charges, your wires company, or the electricity itself. This is purely about how the energy portion of your bill is priced.

Where the two sit today

Option Rate Cost at 600 kWh/month (energy only)
Variable — 30-day average 5.31¢/kWh about $31.86
Variable — 13-month average 5.78¢/kWh about $34.68
Fixed — 1 year 6.57¢/kWh about $39.42
Fixed — 2 year 7.97¢/kWh about $47.82
Fixed — 3 year 8.87¢/kWh about $53.22
Rate of Last Resort (default) 12.01–12.06¢/kWh about $72.12

The gap between the one-year fixed rate and the 13-month variable average is currently about 0.79¢/kWh. On a 600 kWh home that is roughly $4.74 a month, or about $57 a year. That is the honest price of the insurance right now.

Why variable has been winning

Alberta’s wholesale market has been soft. Over the 30 days ending August 19, 2026, the pool price averaged $37.86/MWh — about 3.79¢/kWh — and the median hour was only $23.79/MWh. Thirty-five hours in that window settled at or near zero, mostly overnight and midday when wind and solar output is high relative to demand.

New wind and solar capacity has pushed a lot of hours down toward the floor, and mild shoulder-season weather has kept demand moderate. Fixed prices, meanwhile, are built on forward curves that price in winter risk and the market’s structural changes ahead.

Why fixed still makes sense for some households

Averages hide the hours that hurt. In that same 30-day window the highest single hour cleared at $967.02/MWh, and 30 hours cleared above $100/MWh. Alberta has produced months where the variable rate landed well above every fixed offer on the market, usually during a cold snap when demand peaks, wind output collapses and generation goes offline at the same time.

Fixed is the right answer if:

  • A $150 surprise on a January bill would genuinely disrupt your budget.
  • You heat with electricity, so your consumption peaks exactly when prices peak.
  • You run a business and need a predictable input cost to price your own work.
  • You simply do not want to think about this again for a year. That is a legitimate reason.

Variable is the right answer if you have enough financial slack to absorb a rough month, and you would rather capture the low hours than pay a premium to avoid the high ones.

What about natural gas?

The same logic applies but the volatility profile is different. Our variable gas rate is averaging $2.84/GJ (30-day, calculated August 14, 2026) against a fixed rate of $3.77/GJ. Gas prices in Alberta have been low: the government’s reference price ran from $2.46/GJ in January 2026 down to $1.16/GJ in May before recovering to $1.37/GJ in June.

Gas has a sharper seasonal shape than power, and gas consumption is overwhelmingly concentrated in winter. A household that locks gas is buying certainty on the bills that matter most. See natural gas rates in Alberta explained for the full picture.

A practical way to decide

  1. Look at your worst month, not your average month. Pull last January’s bill. If the variable version of that bill would have been survivable, variable is defensible.
  2. Check the spread, not the headline. Compare the fixed rate to the 13-month variable average, not to today’s variable rate. Today’s number flatters variable in the summer.
  3. Count the fees. The administration fee applies either way, but it changes the real cost per kilowatt-hour more than you would think on a low-use home.
  4. Do not split the difference by doing nothing. Doing nothing puts you on the Rate of Last Resort at 12.01 to 12.06¢/kWh, which is worse than both options.

You can move between rate types with us without an exit penalty on variable, so this is a decision you are allowed to revisit.

Frequently asked questions

Is fixed or variable cheaper in Alberta right now?

Variable. As of August 20, 2026 the variable rate is averaging 5.31¢/kWh over 30 days versus 6.57¢/kWh for a one-year fixed rate. Over the last 13 months variable averaged 5.78¢/kWh, still below the fixed rate.

How often does an Alberta variable rate change?

Monthly. It is set from a rolling average of the AESO wholesale pool price, so it reflects what electricity actually cost rather than a forecast.

Can a variable rate spike?

Yes. Alberta’s pool price is volatile by design. In the 30 days to August 19, 2026 the highest single hour settled at $967.02/MWh even though the month averaged $37.86/MWh. Monthly variable rates smooth that, but cold snaps can still produce an expensive month.

Should I lock in for one year, two years or three?

Longer terms cost more, so the question is how much certainty you want to buy. One year at 6.57¢/kWh is the mildest premium; three years at 8.87¢/kWh is a substantial bet that prices will rise. Most households choosing certainty pick one or two years.

Can I switch from fixed to variable before my term ends?

You can, but a fixed-term contract may carry an exit fee. Check your contract terms before you move. Variable plans do not have a term to break.

Sources

Get Energy is a competitive retailer offering electricity and natural gas services for residential, small business, and farm consumers across Alberta. Get Energy is a tradename of Utility Network & Partners Inc.