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Over the last year, Alberta's electricity regulated rate option (RRO) has hit all-time highs due to changes in market conditions and global events. In the past, when the RRO was lower than fixed rate 91ÖÆƬ³§, RRO customers like you saw significant savings by taking advantage of low market pricing during that time.

Remember when electricity prices hit a historic low of 2.9¢/kWh in May 2017?ÌýThat was the best time to be on the RRO!

However, a lot has changed in the last few years, and we want to ensure that you understand your energy options to decide what’s right for you.

From supply chain issues to commodity shortages and higher production costs, consumers have been facing higher prices and bigger bills since the start of the pandemic. Unfortunately, electricity rates are no different as the cost of generating electricity has also hit all-time highs this year.

In August 2023, the average RRO is 32.26¢/kWh (not including transmission and distribution charges), which is the highest it has ever been.Ìý

Why are electricity rates in Alberta higher than ever?

As AlbertaÌýÌýby the end of 2023, natural gas is now our main fuel source for electricity generation, which has led to a higher cost of generating electricity.Ìý

During the hotter summer months and colder winter months, the increased energy demand and usage further drives up the price of electricity.Ìý

Based on current market information, our Direct Energy experts expect electricity rates to remain high until February 2024.Ìý

What is the difference between a regulated rate and fixed rate options?

In Alberta, you can choose a regulated or competitive retailer to energize your home or business.

The key differences between regulated and competitive energy services are the rates charged and the need for a contract.Ìý

Regulated rates are based on market prices and are reviewed and approved by the Alberta Utilities Commission (AUC) each month to ensure they are fair and accurate. Customers can choose regulated rates without the need for a contract.

Competitive retailers offer stable fixed rate plans for various contract lengths such as 1, 3 or 5 years. As a competitive provider, we can provide you with fixed prices with no early exit fees, bundled rates, green energy, and other promotions.