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 — with real Alberta rate data — 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 3 years. No matter what happens in the wholesale electricity market, your rate stays the same.
- Predictable bills — Your rate doesn’t change month to month
- Protection from spikes — When wholesale prices surge (and they do in Alberta), you’re shielded
- Easy budgeting — You know exactly what you’ll pay per kWh for the duration of your term
What Is a Variable Electricity Rate?
A variable rate follows the wholesale electricity market. Your rate changes — typically month to month — based on what electricity actually costs on the Alberta power pool.
- Can be lower than fixed — When the market is soft, you pay less
- No commitment — You’re not locked into a term (though most fixed plans from competitive retailers also have no cancellation fee)
- Risk of price spikes — When demand surges or supply tightens, your rate can jump significantly
Head-to-Head Comparison
| Factor | Fixed Rate | Variable Rate |
|---|---|---|
| Price stability | ✅ Same rate every month | ❌ Changes monthly |
| Potential savings | Moderate — locked in at today’s rate | Higher — but only if the market stays low |
| Risk | Low — no surprises | Higher — prices can spike |
| Best for | Families, fixed-income, budget planners | Risk-tolerant, market-watchers |
| Current Get Energy rate | 6.57¢/kWh (elec) / $3.77/GJ (gas) | 5.78¢/kWh avg (elec) / $2.96/GJ avg (gas) |
What About the Rate of Last Resort (RoLR)?
If you haven’t actively chosen a retailer, you’re on the Rate of Last Resort — the default rate set through an AUC-approved process and fixed from January 1, 2025 to December 31, 2026 (ENMAX, EPCOR, or ATCO).
When Does Fixed Make More Sense?
- You want predictable bills. If you’re on a fixed income, running a household budget, or just don’t want surprises, fixed is the safer choice.
- Market rates are trending up. If wholesale prices are climbing, locking in now protects you from future increases.
- You don’t want to think about it. Fixed means you sign up once and don’t check rates again for 1-3 years.
When Does Variable Make More Sense?
- Market rates are low and stable. Right now (mid-2026), the variable rate is significantly below fixed. If you believe the market will stay soft, variable saves money.
- You watch the market. If you’re comfortable checking rates periodically and switching if things change, variable can be a smart play.
- You use a provider with no cancellation fees. With Get Energy, you can ride the variable rate while it’s low and switch to fixed anytime — no penalty.
The Smart Strategy: Ride Variable, Lock In When It Rises
Here’s what savvy Alberta energy consumers do:
- Start on variable when the market is low (the 13-month average is 5.78¢/kWh, calculated August 31, 2026)
- Monitor the market — watch for signs that wholesale prices are climbing
- Lock into a fixed rate before prices surge, securing a low rate for 1-3 years
This strategy only works with a retailer that doesn’t charge cancellation fees — which is exactly how Get Energy works. You can switch between fixed and variable at any time.
What About Natural Gas?
The same fixed vs. variable logic applies to natural gas, measured in gigajoules (GJ):
- Get Energy fixed gas rate: $3.77/GJ
- Get Energy variable gas rate: $2.96/GJ 13-month average (calculated August 25, 2026), plus a $0.50/GJ transaction fee
- Rate of Last Resort gas rate: set through an AUC-approved process — typically higher than competitive rates
Gas tends to be more seasonal than electricity, with prices rising in winter when heating demand increases. A fixed rate before winter can be a smart hedge.
The Bottom Line
There’s no universally “better” option — it depends on your situation:
- Choose fixed if you value predictability and want to set it and forget it
- Choose variable if the market is low and you’re comfortable with some fluctuation
- Avoid the Rate of Last Resort — it’s almost always the most expensive option
Either way, the worst thing you can do is nothing. If you’re still on the default Rate of Last Resort, you’re almost certainly paying more than you need to.
See How Much You Could Save
Fixed from 6.57¢/kWh. Variable averaging 5.78¢/kWh over 13 months. No cancellation fees, ever.
More Get Energy guides, rate pages and Alberta city pages: browse the full index.
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
- AESO market and system reporting — hourly pool price data for the 30 days to August 19, 2026, retrieved August 20, 2026.
- Utilities Consumer Advocate — Default rates — Rate of Last Resort pricing.
- Government of Alberta — natural gas reference price — monthly $/GJ series cited above.
- Get Energy live rate sheet.
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.
Prices move week to week. Our Alberta Energy Market Report tracks wholesale power prices, the natural gas reference price and retail rate movement every Monday.
Not sure what you signed? No-contract energy providers in Alberta explains terms, exit fees and auto-renewal, and what Get Energy charges to leave (nothing).
Shopping on price? Cheapest electricity rates in Alberta shows how to compare the full energy charge — fees included — against the Rate of Last Resort.
Want the numbers for your own city? See a Calgary electricity bill broken down line by line — ENMAX Power’s regulated delivery charges, the City’s Local Access Fee and the one line a retailer can change.
Recent Comments