In the current electricity market, Albertans are vulnerable to sudden price spikes and uncertainty. We are working to reform our electricity system to ensure that it meets the needs of Alberta families and businesses.

As Alberta’s economy continues to stabilize, we’re protecting families, farms and businesses from electricity price volatility with a four-year cap on power prices.

Price cap

The price cap, which took effect June 1, 2017, ensures Albertans will pay no more than 6.8 cents per kilowatt hour for electricity.

Until May 31, 2021, Albertans on the Regulated Rate Option (RRO) electricity plan will pay the market rate or the government’s cap rate – whichever is lower.

How it works

Regulated Rate Option providers cannot bill customers more than 6.8 cents per kilowatt hour for the electricity component of their bill. If the rate exceeds 6.8 cents per kilowatt hour, the government will pay the difference above that price.

This price protection cap will be automatically added to your bill if you are an RRO customer.

The price cap applies only to the energy portion of a bill. Distribution and transmission charges are not covered by the cap. These charges will be examined as we move forward on improvements to Alberta’s electricity system.

Rate caps for customers of Rural Electrification Associations may vary slightly. Call the Utilities Consumer Advocate at 310-4822 for more information.

Table 1: Regulated electricity rate volatility in Alberta

Average Regulated Rate Option: 2002-April 2018 (C/KWH)

Historically, regulated electricity rates have been extremely volatile – increasing by as much as 65% (or 4.66 cents/kwh) in a single month (April 2011) and crashing by as much as 42% (or 4.14 cents/kwh) in a single month (June 2014).

Other ways to save

To learn more about ways you can save money and power, please visit Energy Efficiency Alberta and view available energy rebates for homeowners and businesses.


Taking action to protect electricity consumers (May 23, 2017)