Alberta’s Regulated Rate Option (RRO): What It Was and What Replaced It

The Regulated Rate Option (RRO) no longer exists. It was Alberta’s default
electricity rate until December 31, 2024, recalculated every month by regulated rate providers. On
January 1, 2025 it was replaced by the Rate
of Last Resort (RoLR)
, which is fixed at 12.01 to 12.06 cents per kilowatt-hour through
December 31, 2026. If you have never signed a contract with a competitive retailer, that is the rate
you are paying today.

Current as of September 7, 2026.

What the RRO was

The Regulated Rate Option was the safety-net rate for anyone who had not chosen a competitive
retailer. Your local regulated rate provider — ENMAX in Calgary, EPCOR in Edmonton, ATCO and
others in rural areas — recalculated it every month from wholesale market prices plus a margin
covering their cost and risk, and the Alberta Utilities Commission approved the result.

That monthly reset was the problem. Because the rate followed the wholesale market with no ceiling,
it produced the bill shocks of 2022 and 2023: above 20 cents per kWh in some months, below 8 cents in
others. Households on the default had no way to plan around it.

What replaced it

Regulated Rate Option (to Dec 31, 2024) Rate of Last Resort (from Jan 1, 2025)
How the price is set Recalculated monthly from wholesale prices Set for a two-year period through a regulatory process
Price today No longer offered 12.01 to 12.06¢/kWh, fixed to December 31, 2026
Contract None None
Who is on it Anyone who had not chosen a retailer Anyone who has still not chosen a retailer

How to tell whether you are on the default

Look at your electricity bill. If the retailer named on it is ENMAX, EPCOR, ATCO or another default
supplier rather than a competitive retailer, and no contract term is listed, you are on the Rate of
Last Resort. The energy rate line will sit close to 12 cents per kWh.

What it costs to stay there

Get Energy’s variable electricity rate averaged 5.78 cents per kWh over the 13 months to
August 31, 2026, and the current one-year fixed rate is 6.57 cents per kWh. Both sit well below the
12.01 to 12.06 cents charged on the default. The gap is the price of never having chosen.

There is also a timing point worth knowing: the Rate of Last Resort is only fixed until
December 31, 2026. What replaces it after that has not been set.

See Get Energy’s current rates or read
should I lock in my energy rate
in Alberta?

Frequently asked questions

Does Alberta still have the Regulated Rate Option?

No. The Regulated Rate Option ended December 31, 2024 and was replaced on January 1, 2025 by the
Rate of Last Resort.

Is the Rate of Last Resort the same as the RRO?

No. The RRO was recalculated every month. The Rate of Last Resort is fixed at 12.01 to 12.06 cents
per kWh for the two-year period from January 1, 2025 to December 31, 2026.

Am I still on the RRO?

You cannot be — it no longer exists. If you have never chosen a competitive retailer you were
moved onto the Rate of Last Resort automatically on January 1, 2025.

Is there a fee to leave the default rate?

No. The Rate of Last Resort has no contract and no cancellation fee, so you can move to a
competitive retailer at any time.

What happens when the Rate of Last Resort period ends?

The current price is fixed only to December 31, 2026. The pricing arrangement that follows has not
been finalised, so anyone on the default should expect a change.

Sources

  • Utilities Consumer Advocate — Rate of Last Resort: definition, price range and the replacement of the Regulated Rate Option effective January 1, 2025. Retrieved September 7, 2026.
  • Get Energy rate figures: 13-month electricity average calculated August 31, 2026; one-year fixed rate current as of September 7, 2026.