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Why Alberta’s regulated natural gas rate stays low

Updated on December 1, 2025

3-minute read

Why Alberta’s regulated natural gas rate stays low

Updated on December 1, 2025

3-minute read

What you need to know

Alberta’s regulated natural gas rate continues to deliver exceptional value. Our December rate is $3.39/GJ, which is 25% lower than the average 2-year fixed rate.^
Because regulated rates follow the market cost of gas, customers benefit when prices drop and in 2025, market conditions remain highly favorable.

There’s no contract, no enrollment or exit fees, and every monthly rate is reviewed and approved by the Alberta Utilities Commission (AUC) to ensure it’s fair, transparent, and accurate.

With Alberta’s relatively mild temperatures this year and a strong natural gas supply keeping market prices low, there’s no better time than now to be on the regulated rate for natural gas.

Your Direct Guide:

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Young woman smiling with mug in hand
Young woman smiling with mug in hand

What is regulated natural gas in Alberta?

Regulated natural gas is Alberta’s default energy option, available to customers who haven’t signed a contract with a competitive retailer. It’s a month-to-month rate that follows the market cost of natural gas and is reviewed and approved by the Alberta Utilities Commission (AUC) to make sure it remains fair and reasonable.

If you’re served by Direct Energy Regulated Services, your natural gas rate automatically adjusts each month to reflect current market conditions, which means you never overpay when prices drop.

Why choose regulated natural gas?

With Alberta’s regulated natural gas rate, you can enjoy flexibility, fairness, and transparency without locking into a long-term plan.

Key benefits include:

  • Lower prices when market rates drop: You automatically pay the market-based rate rather than being locked into a higher fixed plan.
  • No contracts or fees: Join or leave anytime as there are no enrollment or exit fees.
  • A fair rate you can trust: Every monthly rate is reviewed and approved by the AUC, ensuring it’s reasonable and cost-reflective.
  • Fast and simple setup: Service can usually start the same day in most cases.

When conditions are favourable, like they are now, regulated rates can be significantly lower than fixed plans.

How does the regulated rate compare to fixed-rate plans?

The regulated rate is based on real-time market prices for natural gas, while fixed-rate plans lock in a set price for a defined term.

In 2024 and 2025, regulated prices have been well below fixed-rate averages, thanks to mild weather, strong storage levels, and reduced demand.

Sign up for regulated natural gas

How is the regulated natural gas price determined?

We know that the market price for natural gas can fluctuate depending on global and local factors, just like gasoline for your vehicle.

Each month, our team at Direct Energy Regulated Services estimates how much natural gas our customers will need and how much it will cost to buy from producers for the month ahead. We then calculate the Gas Cost Flow-Through Rate, which directly reflects the market price of natural gas at that time.

To make sure pricing stays fair over time, we also review the previous month’s rate:

  • If the forecast was too high, and we collected more than necessary, that amount is credited back in the next month’s rate.
  • If it was too low, the shortfall is added to the following month’s rate.

Since we’re a regulated service, every rate we charge must be reviewed and approved by the Alberta Utilities Commission (AUC), so you can be confident you’re paying a rate that’s accurate and reasonable based on actual market conditions.

While Direct Energy Regulated Services doesn’t control distribution or delivery fees, we work hard to ensure our gas pricing remains transparent, consistent, and fair.

Read more about how we set our natural gas prices.

What are the benefits for existing regulated customers?

If you’re already on regulated natural gas, you’re benefiting from:

  • Market-aligned pricing that remains competitive when wholesale costs fall
  • Consumer protection through monthly rate oversight by the AUC
  • Freedom to switch anytime to a fixed-rate plan if long-term stability fits your needs

Your regulated plan gives you the best of both worlds, flexibility today and choice tomorrow.

When do regulated natural gas rates tend to be lower?

Alberta’s regulated natural gas rate often trends lower during milder seasons and periods of strong supply, like we’ve seen in 2025. Since the rate follows the market cost of gas, customers automatically benefit when wholesale prices drop.

If you’re currently on a fixed-rate plan, it’s worth comparing today’s regulated rate. You may find you’re paying much less per GJ with the regulated option.

^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.

*The forecast is based on the current forward wholesale natural gas price curves as of November 24, 2025, and will not be the exact rates. Natural gas rates can change suddenly based on weather, unplanned infrastructure outages, and global events.

†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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