The Government of Alberta has made changes to the default electricity option that impact customers on the Regulated Rate Option (RRO). Here’s what you need to know!

 

What is the Rate of Last Resort?

The Government of Alberta has mandated, among other things, the following: 

• As of January 1, 2025, the Rate of Last Resort is the default electricity option in the province of Alberta.  
• The Rate of Last Resort is available for consumers who cannot or do not choose to get their electricity from a retailer.
• The Rate of Last Resort will be fixed for 2 years, from January 1, 2025 to December 31, 2026, and can change by up to 10% for the following 2 years. 
• Customers on the Rate of Last Resort can join or leave the Rate of Last Resort at any time without penalty. Customers are not locked on the Rate of Last Resort.
• The Calgary rate was approved through a regulatory process with the Alberta Utilities Commission. The rates for Cardston, Red Deer, and Ponoka were set by their municipal governments. 

To enable these changes, the Government of Alberta enacted the Rate of Last Resort Regulation to replace the RRO Regulation on January 1, 2025. For more information, visit ucahelps.alberta.ca

For Residential Rate of Last Resort, click here.

For Small Business Rate of Last Resort, click here.

 

Why is the Government of Alberta making this change? 

The Government of Alberta has stated this change is being made in order to ensure stability and predictability for customers on the regulated rate. The Rate of Last Resort is available for Albertans who do not sign a competitive retail contract. 

 

I was on the Regulated Rate Option (RRO) – what does this change mean for me?  

All RRO customers were automatically transitioned to the Rate of Last Resort on January 1, 2025. Customers who do not want to continue on the Rate of Last Resort can explore their options and sign-up for an electricity plan with a retailer of their choice. Customers may leave the Rate of Last Resort at any time and will not be charged a cancellation fee or penalty.  

Please note, customers who do leave the Rate of Last Resort will receive their final invoice approximately 4-6 weeks after their cancellation date. 

 

What is the price for the Rate of Last Resort?

The Rate of Last Resort in Calgary, Cardston, Red Deer, and Ponoka is 12.06¢ per kWh, effective January 1, 2025. The Rate of Last Resort is decided through processes with the Alberta regulatory authorities, and the rate is different in other areas of the province. The rate was approved by the Alberta Utilities Commission on November 29, 2024, which was the earliest the rate was known. 

 

Are there other options available?

Absolutely, and understanding your energy choices is important. Customers on the Rate of Last Resort can join or leave the Rate of Last Resort at any time without penalty  – customers are not “locked” on the Rate of Last Resort. Alberta has a unique competitive electricity market, which gives Albertans the power to choose the best energy provider, plan, and payment option to fit their needs. Albertans are encouraged to explore their options and find the rate best suited to their needs. 

Regulated rate customers are free to purchase their electricity from a retailer of their choice. For a list a retailers, visit ucahelps.alberta.ca or call 310-4822 (toll free in Alberta).

 

How is the Rate of Last Resort different than the Regulated Rate Option?

The Rate of Last Resort is a fixed rate, from January 1, 2025, to December 31, 2026, while the RRO was a floating rate that fluctuated each month based on market conditions. The Rate of Last Resort may be adjusted up or down by a maximum of 10% following each two-year period.   

 

Will there be any new or additional fees with the Rate of Last Resort?

Included in the Rate of Last Resort energy rate will be a 0.1¢ per kWh consumer awareness surcharge. This charge will go directly to the Utilities Consumer Advocate (UCA) who will regularly contact Rate of Last Resort customers to inform them of their electricity options. Rate of Last Resort customers’ full names, phone numbers, email addresses and mailing addresses will be shared with the UCA for this purpose every two months following the implementation of the Rate of Last Resort. All other fees and charges will still apply. 

 

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

The Rate of Last Resort came into effect on January 1, 2025. If you were on the RRO and did not take any action, you were automatically switched to the Rate of Last Resort on January 1, 2025. If you have not enrolled in a retail electricity agreement, you are likely on the Rate of Last Resort. Check your electricity bill to see if it says “RRO” or “Rate of Last Resort”. Contact your electricity retailer if you are unsure. 

 

Has ENMAX Energy communicated with customers about the Rate of Last Resort? 

Yes, ENMAX Energy has used several methods to provide notification to customers directly affected by this transition. Our website was updated throughout 2024 as aspects of the Rate of Last Resort became available from the Government of Alberta. ENMAX customers on the RRO saw a message on Page 1 of their December bills about the changes coming on January 1, 2025.  We also sent an email or letter to RRO customers in December with additional information about the transition. This communication targeted RRO customers as they would be automatically transitioned to the Rate of Last Resort if they did not sign up for an alternative electricity plan. 

The notification letter and paper bills were delayed because of the 2024 Canada Post strike and may not have been received until late December or early January. We encourage customers to add an email address to their profile to ensure future communications are received without delay. 

 

What do I do if I’m struggling with my utility bill? 

Albertans who are looking for help with their utility bills should contact the Utilities Consumer Advocate at 310-4822 or through their website, or visit our website to find resources at enmax.com/affordability.