What’s the Difference Between an Energy Retailer and a Distributor?

If you’ve ever looked at your Alberta electricity or natural gas bill and wondered who all these companies are — you’re not alone. Most Albertans see names like ATCO, ENMAX, FortisAlberta, or EPCOR alongside their chosen energy provider and think: wait, didn’t I sign up with one company?

The short answer: in Alberta’s deregulated energy market, retailers and distributors play completely different roles, and understanding the difference can save you real money on your energy bills.

Here’s how it all works — in plain language.

Alberta’s Energy System: The Three Key Players

Alberta’s energy market has three main layers. Each one handles a different piece of getting electricity or natural gas to your home:

  1. Generators/Producers — The companies that produce electricity (power plants, wind farms, solar farms) or extract natural gas. They sell energy on the wholesale market.
  2. Distributors (Wires/Pipes Companies) — The companies that own and maintain the physical infrastructure — the power lines, poles, gas pipelines, and meters that deliver energy to your home.
  3. Retailers — The companies you actually choose to buy your energy from. They purchase energy from the wholesale market and sell it to you at a rate you agree to — either fixed or variable.

Think of it like groceries: the farmer grows the food (generator), the trucking company delivers it (distributor), and the grocery store sells it to you (retailer). You choose which store to shop at, but the truck route stays the same.

What Does an Energy Distributor Actually Do?

Distributors are the infrastructure companies. In Alberta, the main ones are:

  • ATCO Electric — Serves rural and northern Alberta (about 265,000 customers)
  • FortisAlberta — Covers central and southern Alberta (about 580,000+ customers)
  • ENMAX (City of Calgary) — Serves Calgary and surrounding areas
  • EPCOR (City of Edmonton) — Serves the Edmonton region
  • ATCO Gas — Handles most natural gas distribution across Alberta

Here’s what distributors are responsible for:

  • Maintaining power lines, gas pipelines, and meters — They keep the physical network running.
  • Responding to outages and emergencies — If a storm knocks out power in Red Deer or a gas leak is reported in Edmonton, it’s the distributor who sends a crew.
  • Connecting and disconnecting service — When you move to a new home, the distributor handles the physical hookup.
  • Reading your meter — They measure how much electricity or gas you actually use each month.

The Key Point About Distributors

You don’t get to choose your distributor. It’s assigned based on where you live. If your home is in FortisAlberta’s service territory, that’s who maintains your lines — regardless of which retailer you pick. This is because it would be wildly impractical (and expensive) to have competing sets of power lines running down every street.

Distribution charges show up on your bill as “Transmission & Distribution” fees. These are regulated by the Alberta Utilities Commission (AUC) and are the same no matter which retailer you’re with. For a deeper breakdown, see our guide on transmission and distribution charges in Alberta.

What Does an Energy Retailer Do?

Retailers are the companies you actually choose. In Alberta’s deregulated market, you have the freedom to pick your energy retailer — and that choice directly affects the rate you pay for electricity and natural gas.

Here’s what retailers handle:

  • Purchasing energy on the wholesale market — Retailers buy electricity and natural gas from producers and generators.
  • Setting your rate — They offer you a price plan (fixed rate, variable rate, or floating rate) for the energy you consume.
  • Billing you — Most retailers handle the entire bill, including passing through the distribution and transmission charges on a single invoice.
  • Customer service — Questions about your rate, your contract, or your payment? That’s your retailer.

At Get Energy, for example, we offer competitive fixed and variable rates for both electricity and natural gas across Alberta — from Calgary to Grande Prairie to Lethbridge and everywhere in between.

How Retailers and Distributors Work Together

Even though they’re separate companies, retailers and distributors coordinate closely:

  1. The distributor reads your meter and reports your usage.
  2. The retailer takes that usage data and multiplies it by your rate to calculate the energy portion of your bill.
  3. The retailer also collects the distribution and transmission charges on behalf of the distributor and passes them through.
  4. You get one bill from your retailer that includes everything.

This is why your bill shows charges from multiple entities even though you only deal with one company day to day.

Why This Matters for Your Wallet

Here’s the critical takeaway: the only part of your bill you can actually control is the energy rate — and that’s set by your retailer.

Transmission and distribution charges are regulated and fixed. Administration fees are standard. But the cents-per-kilowatt-hour you pay for electricity, or the cents-per-gigajoule for natural gas? That comes down to which retailer you’re signed up with and what plan you chose.

Let’s look at real numbers. On a typical Alberta home using around 600 kWh of electricity per month:

  • At the Regulated Rate Option (RRO), your energy charge fluctuates monthly. In 2025-2026, it ranged from roughly 8 to 18 cents/kWh depending on market conditions.
  • With a competitive fixed-rate plan, you lock in a predictable rate — no surprises when the wholesale market spikes.
  • The distribution and transmission charges remain roughly the same either way — typically $60-$90/month depending on your area and usage.

So switching retailers doesn’t change your wires or pipes, doesn’t interrupt your service, and doesn’t require any equipment changes. It simply changes who sets your energy rate. Learn more about how switching energy providers works in Alberta.

Common Misconceptions About Retailers vs. Distributors

“If I switch retailers, will my power go out?”

No. Switching retailers is a billing change, not a physical one. Your distributor (FortisAlberta, ATCO, ENMAX, EPCOR) continues maintaining your lines exactly as before. The electrons flowing into your home don’t know or care which retailer you’re with.

“My distributor is also my retailer — is that normal?”

Yes, in some cases. ENMAX and EPCOR operate as both distributors and retailers in Calgary and Edmonton respectively. But even if your distributor also offers retail services, you’re not locked in. You can still switch to an independent retailer like Get Energy for a potentially better rate.

“Can my retailer fix a power outage?”

No. Power outages, gas leaks, and infrastructure problems are handled by your distributor. If you lose power, call your distributor’s emergency line — not your retailer. Your retailer can help with billing questions, rate changes, and account management.

“Are all retailers basically the same?”

Definitely not. Retailers differ in the rates they offer, their contract terms, customer service quality, cancellation fees, and additional programs. Some retailers lock you into long contracts with hefty exit penalties. Others, like Get Energy, focus on straightforward pricing without hidden fees. It pays to compare — literally. Check out our Alberta energy providers comparison for a side-by-side look.

What About the Regulated Rate Option (RRO)?

If you haven’t actively chosen a retailer, you’re likely on the Regulated Rate Option. The RRO is a default rate set monthly based on wholesale market prices, offered by your local default supplier (often your distributor’s retail arm).

The RRO isn’t a “government rate” or a discounted rate — it’s simply the rate you get if you don’t shop around. In many months, competitive retailers offer rates below the RRO. For more details, read our full breakdown: Alberta’s Regulated Rate Option (RRO) Explained.

The Role of the Alberta Utilities Commission (AUC)

The AUC oversees the entire system to make sure it’s fair:

  • They regulate distribution charges — distributors can’t just charge whatever they want.
  • They license retailers — every retailer operating in Alberta must be AUC-licensed.
  • They set rules for contracts — retailers must follow specific disclosure and cancellation rules.
  • They handle complaints — if you have a dispute with your retailer or distributor, the AUC is the final authority.

This regulatory framework is what makes Alberta’s deregulated market work. “Deregulated” doesn’t mean unregulated — it means you have the freedom to choose your retailer while the infrastructure and rules are still overseen by the province.

How to Tell Which Is Which on Your Bill

Next time you look at your energy bill, here’s a quick guide to what comes from where:

Bill Line Item Who Sets It Can You Control It?
Energy Charge (¢/kWh or ¢/GJ) Your Retailer Yes — by choosing your retailer and plan
Transmission Charge Regulated (AESO/AUC) No — same for everyone
Distribution Charge Your Distributor (AUC-regulated) No — based on your location
Rate Riders Regulated (AUC) No — temporary adjustments
Administration Fee Your Retailer Partially — varies by retailer
Local Access Fee / Municipal Fee Your Municipality No — set by your city/town

For a complete walkthrough of every charge on your bill, see our guide: Your Alberta Electricity Bill Explained.

How to Choose the Right Retailer

Since your retailer is the one part of the equation you control, here’s what to look for:

  1. Compare rates — Look at the actual cents/kWh or cents/GJ, not just marketing claims. Check current Get Energy rates here.
  2. Understand the contract — How long is the term? Is there an early cancellation fee? What happens when the contract expires?
  3. Check for hidden fees — Some retailers advertise low rates but add high administration fees, exit fees, or “security deposits.”
  4. Look at customer reviews — Google Reviews, BBB ratings, and the AUC’s complaint records tell you a lot.
  5. Consider additional benefits — Do they offer energy bundles with internet or other services? Special programs like Solar Club for solar homeowners?

Frequently Asked Questions

Can I switch energy retailers if I’m renting?

Yes. If the energy account is in your name, you have full freedom to choose your retailer — whether you own or rent. Your landlord cannot force you to use a specific retailer if you’re the account holder.

How long does it take to switch retailers?

Switching typically takes effect within one billing cycle (about 30 days). There’s no physical work required — no one comes to your home, and your service is never interrupted.

Will switching retailers affect my gas AND electricity?

Not automatically. Electricity and natural gas are separate accounts, even if they appear on the same bill. You can switch one, both, or neither independently.

What happens if my retailer goes out of business?

You won’t lose power or gas. If a retailer ceases operations, your account is transferred to the default RRO supplier for your area. Your distributor keeps delivering energy regardless of what happens to your retailer.

Do I need to notify my distributor if I switch retailers?

No. Your new retailer handles the switch notification. The distributor updates their records automatically — you don’t need to make any calls or fill out any forms with them.

The Bottom Line

Understanding the difference between retailers and distributors is one of the most practical pieces of energy knowledge an Albertan can have. Your distributor keeps the lights on — literally — by maintaining the wires and pipes. Your retailer determines what you pay for the energy flowing through them.

Since you can’t change your distributor but you can change your retailer, that’s where your power (pun intended) lies. If you haven’t compared rates recently, it’s worth a five-minute look.

→ Compare Get Energy’s current electricity and natural gas rates