2026 Alberta energy market update

Updated on February 1, 2026

4-minute read

What you need to know

Alberta’s energy market continues to evolve in 2026. Natural gas prices remain low with our February regulated gas rate at $2.42/GJ which is 47% lower^ than the average fixed rate, making this a strong year for regulated gas customers. The Federal Carbon Tax on natural gas ended April 1, 2025, reducing bills province-wide. On the electricity side, the Rate of Last Resort (RoLR) replaced the Regulated Rate Option (RRO) on January 1, 2025, locking in a fixed rate of 12.02¢/kWh through 2026 for customers with Direct Energy Regulated Services. As Alberta’s weather shifted sharply from summer warmth to early winter conditions, cooler days and frosty mornings are already driving up home heating needs. Learn what these updates mean for your energy rates, usage and bill this year.

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If you're on a regulated rate or floating rate plan, these are the key factors that affect your monthly energy rate.

Natural gas price forecast in Alberta

Our regulated natural gas rate is $2.42/GJ in February which is 47% lower^ than the average fixed rate. Best of all, natural gas rates are forecasted* to remain low so it's a great time to be on regulated gas.

Why regulated natural gas rates remain low in 2026

With strong local supply, high storage levels, and milder weather across much of the province, wholesale gas prices have remained well below average. Since regulated rates are directly tied to the market cost of gas instead of fixed in long-term contracts, customers benefit right away when prices drop. Learn more about the benefits of regulated natural gas and how its price is determined.

Federal Carbon Tax charges on natural gas ended on April 1

Starting April 1, 2025, you will no longer be charged a Federal Carbon Tax on your natural gas usage.

Was it still on your bill in April? Don’t worry, it just means some of your usage was from March. Check the billing period to confirm. For example, if your bill covers March 15 to April 15, you’ll see carbon tax charges for gas used March 15-31. Any usage from April 1 onward won’t be taxed.

Also, the final Canada Carbon Rebate was issued starting April 22, 2025. Have more questions? We’ve got answers here.

Regulated electricity changes in Alberta

From the RRO to the Rate of Last Resort

On January 1, 2025, the Regulated Rate Option (RRO) was replaced with the Rate of Last Resort which is a fixed rate product set every two years. The Rate of Last Resort (RoLR) is now the default electricity rate for Albertans who have not chosen, or are not currently with, a competitive energy retailer.

How the Rate of Last Resort works

The price of Alberta's Rate of Last Resort which has been approved by the Alberta Utilities Commission (AUC), will vary across different areas of the province. If Direct Energy Regulated Services is the default energy provider in your area, our Rate of Last Resort is 12.02 cents/kWh from January 1, 2025, to December 31, 2026.

Wondering why the RRO has changed to the Rate of Last Resort and how it could affect you? Here’s what you need to know.

If you’re looking for longer-term rate stability, we have fixed-rate plans with no early exit fees, bundled rates, green energy, and other promotions.

View fixed rates

Customers are free to purchase natural gas services or electricity services from a retailer of their choice. For a list of retailers, visit ucahelps.alberta.ca or call 310-4822 (toll-free in Alberta).

^Based on an average of the lowest advertised 2-year fixed rates from ATCO Energy, EasyMax, Encor and Direct Energy as of January 28, 2026.

*The forecast is based on the current forward wholesale natural gas price curves as of January 28, 2026, and will not be the exact rates. Natural gas rates can change suddenly based on weather, unplanned infrastructure outages, and global events.

2026 Alberta energy market update