Direct Energy vs Regulated Services: What’s the difference?

In Alberta, you can choose between a regulated or competitive provider to energize your home or business.

Direct Energy Regulated Services is a regulated retailer. That means that our services are “regulated” by a government-body called the Alberta Utilities Commission (AUC). The AUC approves the plans for setting our gas and electricity rates. They ensure that our rates reflect market conditions and meet the requirements of those price-setting plans.  

Meanwhile, Direct Energy is a competitive retailer. The AUC doesn’t regulate it. That means we can offer fixed-rate contracts for natural gas and electricity. Those rates don’t change during the contract term, so you’ll pay the same rate regardless of market conditions.

Both energy solutions provide natural gas and electricity to power your home or business, but they are different when it comes to signing up, contracts and rates.

We’ve put together a simple breakdown to help you better understand the difference between Direct Energy and Direct Energy Regulated Services.

• As a competitive retailer, we offer stable fixed-rate plans for various contract lengths. For example, you can sign up for one, three or five years at the same fixed rate. Signing up for a fixed rate can help you avoid market volatility. Some people prefer this option because it ensures stability for as long as they need it.
• With Direct Energy, you will benefit from a combined bill, bundled rates, no exit fees, green energy options, and other promotions.
• There are no service territory restrictions. You can sign up with us almost anywhere in Alberta.

• While Alberta’s energy market is deregulated, regulated electricity and gas rates still play a key role.
• As a regulated service provider, we provide rates that have been reviewed and approved by the AUC to ensure it is fair and accurate.
• Our regulated natural gas rate changes monthly based on market conditions.
• The Rate of Last Resort (RoLR), which has replaced the Regulated Rate Option (RRO), is a regulated fixed electricity rate that is set every two years and approved by AUC. The RoLR can only go up or down by a maximum of 10% every two years.
• To make things easy for you, we don’t have sign-up or exit fees, and you don't have to sign a contract with us when you register.
• We also offer easy setup for new customers. In most cases, we can turn on your electricity or natural gas as soon as you need it.
• You’ll benefit from lower rates when the market rates are lower but can pay more when they’re not.