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Rate of Last Resort (RoLR) replaces Alberta's RRO

Updated on December 1, 2025

4-minute read

Rate of Last Resort (RoLR) replaces Alberta's RRO

Updated on December 1, 2025

4-minute read

What you need to know

Starting January 1, 2025, Alberta’s Regulated Rate Option (RRO) for electricity was replaced by the Rate of Last Resort (RoLR), a new fixed-rate product set every two years. The RoLR is now the default electricity rate for Albertans who haven’t chosen a competitive retailer.

If Direct Energy Regulated Services supplies power in your area, the approved RoLR is 12.02 ¢/kWh from January 2025 to December 2026.

Unlike the RRO’s monthly-fluctuating prices, the RoLR offers two-year price stability with a maximum 10 percent adjustment at the end of each term. Eligible households using less than 250,000 kWh per year are automatically enrolled, and a small 0.1 ¢/kWh fee supports consumer-awareness programs through the Utilities Consumer Advocate.
This change only affects regulated electricity rates. Regulated natural gas remains unchanged and continues to remain lower^ than fixed-rate plans in 2025.

Your Direct Guide:

What is Alberta’s Rate of Last Resort (RoLR)?

The Rate of Last Resort is Alberta’s default regulated electricity rate that replaced the Regulated Rate Option (RRO) on January 1, 2025. It’s a fixed rate set every two years and approved by the Alberta Utilities Commission to provide price stability for customers who have not chosen, or are not currently with, a competitive energy retailer. 

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.

Why did the RRO change to the Rate of Last Resort?

The Government of Alberta replaced the Regulated Rate Option (RRO) with the Rate of Last Resort (RoLR) to give the default electricity rate a clearer, more accurate name. The goal is to help Albertans better understand that this rate is intended as a backup or default option, not a long-term plan, and to encourage customers to compare competitive fixed-rate plans for more choice and stability.

Rate of Last Resort vs RRO: What's the difference?

Unlike the RRO which is a monthly fluctuating rate that adjusts based on the market, the Rate of Last Resort is set every two years to avoid sudden spikes in pricing for customers. 

The Rate of Last Resort is a fixed rate from January 1, 2025, until December 31, 2026, and can only go up or down by a maximum of 10% at the end of each 2-year term.

Who qualifies for the Rate of Last Resort (RoLR) in Alberta?

The Rate of Last Resort (RoLR) is available to residential and small business customers in Alberta who use less than 250,000 kWh of electricity per year which is roughly what a typical home uses (about 7,600 kWh annually).

If you haven’t signed a contract with a competitive retailer and your usage is below that threshold, you’re automatically enrolled in the RoLR through your default provider.

Rate of Last Resort vs competitive fixed rate plans

As of January 1, 2025, Alberta’s Regulated Rate Option (RRO) transitioned to the Rate of Last Resort (RoLR), a two-year fixed rate approved by the Alberta Utilities Commission (AUC).

Here’s how the RoLR compares to competitive fixed-rate electricity plans offered by retailers:

Rate determination and approval

The RoLR fixed rate is a regulated fixed rate that is set every two years and approved by the Alberta Utilities Commission (AUC). The RoLR can only go up or down by a maximum of 10% at the end of each 2-year term. Whereas, competitive fixed rate plans are determined by individual retailers based on market conditions and business strategies, offering various term lengths and rates.

Flexibility and customization

The RoLR fixed rate is automatically applied to customers without a competitive contract and doesn’t have any customization options. With a competitive fixed rate plan, you can select different term lengths, rates and additional features like green energy options as well as benefit from incentives and promotions.

Pricing stability and term length

While both rates provide price stability, competitive fixed rate plans allow you to select a term length that fits your preferences.

Additional fees

Both the RoLR and competitive fixed-rate plans include standard delivery and administration charges. The RoLR also includes a small consumer-awareness surcharge approved by the Alberta Utilities Commission.

Does the Rate of Last Resort have any extra fees?

Yes. The Rate of Last Resort (RoLR) includes a small 0.1¢/kWh surcharge that goes to the Utilities Consumer Advocate (UCA), a government-appointed office that helps Albertans understand their energy options. This fee supports educational programs and customer awareness updates, which the UCA shares every two months using basic contact information from RoLR customers. Aside from this awareness fee, your regular delivery, administration, and transmission charges will still apply as shown on your bill.

How do I know if I’m on the Rate of Last Resort?

You can confirm by checking your electricity bill. If your bill lists Direct Energy Regulated Services, EPCOR Rate of Last Resort, or ENMAX Rate of Last Resort as your provider, you’re on the Rate of Last Resort (RoLR).

Was I automatically switched from the RRO to the Rate of Last Resort?

Yes. All Albertans who were on the Regulated Rate Option (RRO) and didn’t choose a competitive plan were automatically moved to the Rate of Last Resort (RoLR) on January 1, 2025. No action was required.

I’m on the Rate of Last Resort. Do I have other options?

Yes, you have options! We offer fixed-rate electricity plans with no exit fees, combined billing, and exclusive promotions. All you need to do is sign up for a fixed-rate plan online or give us a call at 1-855-452-8869.

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).

Is the Rate of Last Resort for both electricity and gas?

No, the Rate of Last Resort only applies to regulated electricity. Regulated natural gas isn’t affected by these changes.

Both electricity and natural gas rates are reviewed by the Alberta Utilities Commission (AUC), but they’re set separately based on different market factors. That’s why natural gas prices have remained lower than electricity rates over the past two years.

Will my regulated natural gas rate be affected?

No changes there! Your regulated natural gas rate stays the same. In fact, our current regulated gas rate is the lowest** available natural gas rate in Alberta and is forecasted to continue remaining lower^ than fixed-rate plans this winter! Learn more about how regulated natural gas pricing works and why rates are expected to remain low.

What are the benefits of a fixed-rate plan?

A fixed-rate electricity plan protects you from market price swings and gives you budget certainty for as long as your term lasts.

There are no enrollment or exit fees, and if market prices drop, you can switch back to a market-based rate anytime. Knowing exactly what you’ll pay each month helps you plan ahead and manage your household energy costs with confidence.

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 November 24, 2025.

^Based on the natural gas forward curves as of November 24, 2025.

†Based on 2-year natural gas fixed rate plans by Encor, ATCO Energy and Direct Energy from September – December 2025, as of November 24, 2025.

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