Consumers enrolled for Alberta’s default electricity rate will be asked to reaffirm their purchasing decision at 90-day intervals beginning next year. What was previously officially known as the regulated rate option (RRO) will also be renamed the rate of last resort (ROLR).
The Alberta government describes the tactics, which have been enabled through recent amendments to the Alberta Utilities Commission Act, as “part of ongoing consumer awareness initiatives” to promote the options for competitive retail electricity contracts at either fixed or variable rates that are available in the market.
Under provincial rules, the Alberta Utilities Commission (AUC) determines the default rate for all consumers who do not have a contract and they are automatically enrolled for that billing option. Currently, about 29 per cent of Alberta’s commercial customers, 26 per cent of residential customers and 40 per cent of farm customers are billed the default rate.
The provincial Utilities Consumer Advocate, an arm of the Ministry of Affordability and Utilities, has been given a significant outreach task to contact these customers every 90 days to ascertain their intentions and prod them to consider other options. The advocacy agency’s annual report declares that its total program delivery costs were $6.95 million in the 2023-24 fiscal year, with the consumer education portion of its mandate delivered through a website, social media and a combination of 34 online and in-person presentations. It is also obligated to provide consumers with information about natural gas and water utilities, as well as electricity.
“Alberta’s unique electricity market gives consumers choice in their energy providers and plans. These new regulations bring more clarity and stability to default electricity rates so that Albertans can choose with confidence,” maintains Chantelle de Jonge, a Member of the Legislative Assembly and parliamentary secretary to the Minister of Affordability and Utilities.
“The team at the Utilities Consumer Advocate is available to help consumers understand Alberta’s retail energy market, including these changes, and help them identify options that will work best for their household, farm or small business,” says Chris Hunt, executive director of the Utilities Consumer Advocate.
The provincial government acknowledges that not all Albertans have the ability to participate in the competitive electricity market, either because there are no competitive service providers where they live or because they do not have adequate credit ratings to obtain a contract. As of January 1, 2025, the default rate will switch from a monthly variable to a stable two-year rate. Increases will be capped at no more than 10 per cent when the rate is adjusted biennially.
