What Is the Regulated Rate Option (RRO) in Alberta?

by Malcolm Setter | May 31, 2026 | Energy Education

The Default Rate Most Albertans Don’t Know They’re On

If you’ve never actively chosen an energy provider in Alberta, you’re almost certainly on the Regulated Rate Option — commonly called the RRO. It’s the default electricity and natural gas rate set by your local utility, and it’s designed as a safety net. But for most households, it’s also the most expensive option.

How the RRO Works

The RRO is a variable rate that changes every month. It’s set by your local regulated rate provider — typically your distribution utility:

• ENMAX — Calgary area
• EPCOR — Edmonton area
• ATCO — rural and smaller communities

Each month, these providers calculate the RRO based on wholesale market prices, plus a margin to cover their costs and risk. The rate is approved by the Alberta Utilities Commission (AUC).

Why Is the RRO Usually More Expensive?

The RRO includes a built-in risk premium. Because the utility has to offer this rate to anyone who wants it — without a contract — they price in the risk of market volatility. Competitive retailers, on the other hand, can offer lower rates because they manage their energy purchasing differently and because you’re actively choosing them.

Over the past several years, the RRO has consistently averaged higher than competitive fixed rates available on the open market.

Who Should Use the RRO?

The RRO exists as a consumer protection measure — if competitive retailers went out of business or if you moved to a new home, you’d still have electricity. It’s a reasonable short-term option while you shop for a competitive plan.

But staying on the RRO long-term is like renting a car at the airport without checking prices — you’ll always pay more than you need to.

How to Check If You’re on the RRO

Look at your electricity bill. If your retailer is listed as ENMAX, EPCOR, or ATCO (rather than a competitive retailer), you’re on the RRO. You can also check by looking for “Regulated Rate Option” in the charges section.

How to Switch Off the RRO

Switching is free and easy. You can move to a competitive fixed or variable rate in under 5 minutes — no need to call your current utility. Your new provider handles the transfer automatically.

View Get Energy’s current rates and compare them to your RRO rate. Most households save immediately.

The Bottom Line

The RRO is a safety net, not a savings plan. If you’ve been on it for more than a month or two, you’re almost certainly paying more than you need to. Take 5 minutes to compare rates and switch — your future self (and your wallet) will thank you.

Understanding Your Alberta Electricity Bill — What Every Charge Means

by Malcolm Setter | May 31, 2026 | Energy Education

Why Is My Electricity Bill So Confusing?

Alberta electricity bills are notoriously complex. Between energy charges, delivery fees, transmission costs, rate riders, and admin charges, it can feel like you need an accounting degree just to understand what you’re paying for.

Here’s a plain-language breakdown of every charge on your bill.

The Two Halves of Your Bill

Your electricity bill is split into two main sections:

1. Energy charges — the cost of the electricity itself (this is the part you can change by switching providers)
2. Delivery and regulated charges — the cost of getting electricity to your home (same regardless of who your provider is)

Energy Charges (You Control This)

Supply/Energy Rate

This is the rate you pay per kilowatt-hour (kWh) for the actual electricity. If you’re with a competitive retailer like Get Energy, this is your contracted rate. If you’re on the RRO (Regulated Rate Option), this rate changes monthly.

This is the only line item you can directly reduce by switching providers. Even a small difference — say 2¢/kWh — saves a family using 600 kWh/month about $144 per year.

Delivery Charges (Regulated — Same for Everyone)

Distribution (Local Delivery)

This covers the cost of delivering electricity from the transmission system to your home through local power lines. Your distribution company (ATCO, ENMAX, EPCOR, FortisAlberta) charges this. It includes a fixed daily charge plus a per-kWh rate.

Transmission

This pays for the high-voltage transmission lines that carry electricity across the province from generators to local distribution systems. It’s set by the Alberta Utilities Commission (AUC) and is the same regardless of your retailer.

Other Charges

Rate Riders

Rate riders are temporary charges (or credits) added to your bill to account for differences between forecast and actual costs from previous periods. They can be positive (you owe more) or negative (a credit). These are regulated and apply to everyone.

Local Access Fee

A fee charged by your municipality for the utility’s use of municipal land and infrastructure. Typically around 10-25% of your distribution charges. This goes to your city, not your energy provider.

Admin Fee

A monthly flat fee from your retailer for account administration. Some providers charge $5-$10/month; others include it in their rate.

GST

The federal 5% GST applies to your total electricity charges. Alberta has no provincial sales tax.

Sample Bill Breakdown

Here’s what a typical monthly bill might look like for a household using 600 kWh:

Note: Actual amounts vary by distributor area and usage.

The Takeaway

While you can’t control delivery and transmission costs, you can control your energy supply rate — and that’s the single biggest variable charge on your bill. Switching from the RRO to a competitive retailer like Get Energy is the fastest way to reduce your bill.