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Rate of Last Resort

Rate of Last Resort

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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. 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.

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.

Customers who consume less than 250,000 kWh annually are eligible for the Rate of Last Resort. For example, an average household uses approximately 7,600 kWh per year. So, if you haven't chosen a competitive electricity retailer and consume less than 250,000 kWh per year, then you are automatically a Rate of Last Resort customer.

As of January 1, 2025, Alberta’s Regulated Rate Option (RRO) has transitioned to the Rate of Last Resort (RoLR) as the default electricity rate for customers who haven't chosen a competitive retailer. Unlike the RRO, the RoLR is a fixed rate set every two years. Here’s how the Rate of Last Resort fixed rate compares to competitive fixed rate plans: Rate determination: 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 choice: 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: While both rates provide price stability, competitive fixed rate plans allow you to select a term length that fits your preferences. Additional fees: The RoLR fixed rate includes a small per kWh surcharge for consumer awareness, which goes directly to the Utilities Consumer Advocate (UCA).

Yes, there is a small per kWh surcharge for consumer awareness, which goes directly to the Utilities Consumer Advocate (UCA). This fee helps keep you informed about your electricity choices. To support this, the UCA will get basic contact information for RoLR customers every two months to share updates. Aside from this, regular fees and charges will still apply.

Check your electricity bill and if you’re receiving your electricity charges from Direct Energy Regulated Services, EPCOR Rate of Last Resort or ENMAX Rate of Last Resort, then you are on the Rate of Last Resort.

If you were on the RRO and took no action, you have been automatically switched to the Rate of Last Resort (RoLR) as of January 1, 2025.

Yes, we’ve got you covered. We offer fixed-rate plans with no exit fees, a combined bill and other promotions. Signing up for a fixed rate can help you avoid market volatility and ensure financial security through rate stability for as long as you need it. Plus, there are no enrolment or exit fees. When rates go back down or drop below your fixed rate, you can always switch to a market-based rate plan and take advantage of that lower rate. Also, for some, knowing exactly what you'll pay for electricity every month allows you to be financially prepared and offers peace of mind. 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).

No, the Rate of Last Resort is only for regulated electricity, so regulated natural gas isn’t affected by these regulation changes. While both the regulated natural gas rate and Rate of Last Resort are reviewed and approved by the Alberta Utilities Commission, gas and electricity prices are impacted by different market factors and are set independently.

Direct Energy Regulated Services provides electricity service to Northern Alberta and East-Central Alberta. View the specific areas in Alberta where we provide electricity services. We'd love to serve you.

You can ask us to shut off your electricity service temporarily. However, some charges will still be applied if the property remains connected to the distribution system. Please be aware reconnection costs may be applied when you wish to restore electricity service. To disconnect electricity services during the winter moratorium, October 15 to April 15, you must complete and sign a Premise Vacancy Agreement.

The Alberta Utilities Commission (AUC) provides unbiased information to help Albertans understand their energy options and make informed decisions.

Yes. Delivery and distribution charges are set by your local distributor and regulated by the Alberta Utilities Commission (AUC). They are the same regardless of which energy retailer you choose.

These charges cover the cost of maintaining infrastructure such as power lines and pipelines that deliver energy to your property.

No. These charges are regulated and set by your distributor. However, they may increase if your energy usage increases.

You can control your energy usage and the type of rate plan you choose (regulated or competitive). Distribution and government charges are fixed and not controlled by your retailer.

You can control your energy usage and the type of rate plan you choose (regulated or competitive). Distribution and government charges are fixed and not controlled by your retailer.

Energy prices fluctuate based on supply and demand, weather conditions, and market factors. Regulated gas rates change monthly, while electricity under the Rate of Last Resort (RoLR) is determined and fixed for a set period by the Alberta Utilities Commission, based on market conditions.

Your bill typically includes energy charges (usage), delivery and distribution charges, and government or regulatory fees.

Contact your local distributor (such as ATCO or Fortis), as they are responsible for infrastructure, outages, and emergencies—not your energy retailer (such as Direct Energy or Direct Energy Regulated Services).

Based on your region, you will automatically be served by a default regulated provider like Direct Energy Regulated Services to ensure continuous service.

What to do if you're on the Rate of Last Resort (RoLR) in Alberta

From January 2025, the Government of Alberta has implemented the Rate of Last Resort (RoLR) as the new default electricity rate, taking over from the Regulated Rate Option (RRO). This change affects only regulated electricity rates, leaving regulated natural gas rates unchanged. Curious about how this might impact your energy bill? Watch this video for a quick summary of the changes and their potential effects on you.

 

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Illustration of two individuals shaking hands, representing partnership and mutual understanding.
Illustration of two individuals shaking hands, representing partnership and mutual understanding.

Are you on a fixed or variable rate plan? We have more FAQs specifically for Direct Energy customers.

See more FAQs

Have a question about rates or need help placing an order?

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