Albertans need to be able to make smart financial choices, including choosing an affordable electricity plan that best meets their needs. While most ratepayers choose to sign competitive contracts with one of more than 50 electricity providers in the province’s uniquely competitive market, those who don’t are automatically enrolled on the Rate of Last Resort – the default electricity rate – and likely to pay more for their power.

As part of ongoing efforts to help Albertans save more on their electricity bill, Alberta’s government is launching an advertising campaign to encourage Albertans to explore their electricity options and ensure they know they don’t have to settle for the Rate of Last Resort.

“Albertans shouldn’t pay more on their power bill than they have to. Our government is taking action to ensure they have the tools they need to make informed decisions about their electricity so more of their hard-earned dollars can be used where they’re needed most for them and their families.”

Nathan Neudorf, Minister of Affordability and Utilities

Last year, tens of thousands of households made the switch from the Rate of Last Resort to a competitive contract. The campaign aims to ensure new Albertans and first-time ratepayers still on the Rate of Last Resort know they have choices when it comes to their power bill, and a better electricity option that could save them hundreds of dollars may be available to them.

“Alberta’s competitive electricity market gives consumers choice, and for most Albertans, competitive retail rates are a better choice than the Rate of Last Resort. I encourage everyone to learn about their electricity options and contact the Utilities Consumer Advocate if you need help understanding your utilities.”

Chantelle de Jonge, parliamentary secretary, Affordability and Utilities

The campaign builds on existing consumer awareness initiatives and efforts to lower utility bills and protect ratepayers from volatile price spikes. New regulations came into effect Jan. 1 that require providers to clearly indicate on customers’ utility bills if they are on the Rate of Last Resort and inform them of their competitive retail market options. Every 90 days, the Utilities Consumer Advocate will contact all ratepayers on the Rate of Last Resort, confirm whether they would like to remain on the default rate and encourage them to explore their options.

“Moving to a new place can be overwhelming and expensive, especially those moving from outside the province or country. Alberta’s government is helping ease stress and financial strain by making sure newcomers are informed about their electricity options.”

Yuliia Haletska, case manager – Ukrainian, vulnerable population services, Centre for Newcomers

To protect any Albertans who may not be able to sign a competitive contract from sudden, volatile price spikes, the Rate of Last Resort is set at approximately 12 cents/kWh. The rate is set every two years and can only be changed by a maximum of 10 per cent between two-year terms. Through these changes, Alberta’s government is making the Rate of Last Resort more stable and predictable for Albertans unable to sign a competitive contract. Albertans who are looking for help with their utility bills or are experiencing a dispute with their provider should contact the Utilities Consumer Advocate (UCA).

Quick facts

  • Albertans have three options when purchasing their electricity: the Rate of Last Resort, a competitive contract for a variable rate, or a competitive contract for a fixed rate.
  • Competitive retail contracts continue to provide the best, lowest cost options for Albertans.
  • The Rate of Last Resort is approved by the Alberta Utilities Commission (AUC) and is not determined by the government.
  • Approximately 26 per cent of residential customers purchase electricity through the Rate of Last Resort.
  • Approximately 29 per cent of eligible commercial customers and 40 per cent of farm customers purchase electricity through the Rate of Last Resort.

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