2024 Alberta energy market update

Updated on October 1, 2024

3-minute read

2024 Alberta energy market update

Updated on October 1, 2024

3-minute read

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

Scenic view of Moraine Lake Alberta
Scenic view of Moraine Lake Alberta
Scenic view of Moraine Lake Alberta

Natural gas price forecast in Alberta

Our regulated natural gas rate is $0.62/GJ in October which is 88% lower^ than the average fixed rate.

Best of all, natural gas rates are forecasted to stay low throughout 2024 so it's a great time to be on regulated gas. While the forecast rates show a slight increase from November onwards, this is a normal occurence due to higher demand in winter. Learn more about the benefits of regulated natural gas and how its price is determined.

Electricity price forecast in Alberta

Good news! The RRO in Alberta which was previously at an all-time high has finally stabilized.

Our regulated electricity rate in October is 10.39 cents/kWh which is 49% lower** than October 2023. 

Over the last two years, Alberta's electricity regulated rate option (RRO) was higher than ever due to changes in market conditions and global events. However, electricity prices are now forecasted to continue decreasing and will remain reasonably low in 2024. Learn more about why electricity prices in Alberta are suddenly going down.

The Government of Alberta is planning to rename the RRO to the Rate of Last Resort (ROLR) and introduce new legislation this summer. These changes only impact regulated electricity rates and there are no changes being made to regulated natural gas.

Wondering what these changes to regulated electricity rates will be and how it could affect you? Here’s what you need to know.

Up until December 2024, the cost difference between the RRO electricity rate from January - March 2023 and the 13.5¢/kWh cap will continue to be added to the current RRO to help recover costs.

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.

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).

 

Weather conditions in Alberta

Did you know that the transmission and distribution charges on your energy bill are affected by weather changes too? Learn more about transmission and distribution fees and how it works.

Here are the top Alberta weather highlights in 2024 that impacted your energy usage and fees on your energy bill:

September 2024

We've officially transitioned from summer to fall and as expected, Alberta experienced fluctuating weather and temperatures in September with a combination of warm summer-like days and cooler fall temps. Albertans had to crank up their air conditioners on the hotter days, while chilly mornings had furnaces kicking in. This back-and-forth meant energy usage was a bit unpredictable, with some homes using both AC and heat in the same week!

August 2024

There was a mix of warm and cooler days in Alberta this August, with highs in the mid-20s to low 30s. While the recent wildfires have started to ease, the lingering effects on air quality might still impact energy use as Albertans are relying on air conditioning to stay comfortable indoors. So expect to see a bump in your energy bill if you've been using air conditioning all summer long.

July 2024

Alberta has been experiencing a record-breaking heatwave since mid July. Temperatures soared past 30°C and wildfires continue to spread throughout parts of the province. Unfortunately, this hot and smoky weather is likely to stick around well into September. Stay cool and take care!

If you've been impacted by the recent wildfires and need assistance with your account, we're here to help you when you are ready. View our payment options and access government resources here.

June 2024

Summer has officially arrived! June started off warm and sunny with a few cool days mid month. If you are using an AC to keep cool this summer, you will notice a spike in your electricity usage over the next few months. Here are some ways to save energy this summer.

May 2024

Alberta had its first tornado of the year and a heavy snow dump just before the start of May. The weather remained damp and cool for the rest of the month with much-needed rain which helped reduce the wildfires in Fort McMurray and prevent it from spreading further.

April 2024

Just as fast as temperatures warmed up at the start of the month, temperatures dropped just as quickly due to an unexpected cold front which brought heavy snow dumps. Thankfully, the average temperature was relatively normal for April so there wasn't an unusual increase in heating usage. Plus, this much-needed moisture is a real win for our local farmers who have been dealing with long-term drought conditions in Alberta.

March 2024

Spring arrived and so did more snow! In early March, we had a snowy start with certain parts of Alberta getting more than 25 centimetres. On the bright side, since daylight savings has started again we can enjoy longer days and later sunsets, which also means less lighting costs as we move in spring and summer.

February 2024

There was a little bit of a reprieve from the frigid cold that the Polar Vortex brought last month. Even with the sporadic cold shots of Arctic air, Alberta had above-average temperatures from February to March due to a milder and drier El Niño winter. 

However, the Polar Vortex in January caused natural gas prices to increase significantly in February. As a result, you may notice a higher energy bill in February due to rates and regular heating usage. 

January 2024

The Polar Vortex in January brought a deep freeze and -40°C temperatures to Alberta, breaking temperature records from over 50 years ago. Due to the extreme cold weather, AESO issued a grid alert asking Albertans to conserve energy to reduce the risk of rolling outages. With an increased need for heating and higher than normal energy usage, you may notice a higher energy bill in January.

 

^Based on an average of the lowest advertised 5-year fixed rates from Atco Energy, EasyMax, Encor, and Direct Energy as of September 25, 2024.

*The forecast is based on the current forward wholesale natural gas and electricity price curves on September 25, 2024, and will not be the exact rates. Natural gas and electricity rates can change suddenly based on weather, unplanned infrastructure outages, and global events.

**Based on Direct Energy Regulated Services' regulated electricity rate in October 2023, 20.48 cents/kWh.

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