Alberta Rate of Last Resort vs competitive retailers: what changed and how to choose

In Alberta, if you do not sign a contract with a competitive electricity retailer, you are on the Rate of Last Resort (RoLR). It replaced the old monthly-changing Regulated Rate Option (RRO) on 1 January 2025 and is fixed for two years: for 1 January 2025 to 31 December 2026 the Utilities Consumer Advocate (UCA) lists it at 12.01¢ to 12.06¢ per kWh depending on your area. A competitive plan only makes sense if its total cost, including the admin fee, beats that default for your usage, or if you value a feature such as a longer fixed term. The RoLR is re-evaluated every two years, and the UCA says proposed adjustments cannot normally exceed 10% of the existing rate, so check the rate set for 2027 before you compare.

This guide belongs to our overview of electricity rates by province.

The Rate of Last Resort in 2025–2026

Source: UCA default rates table, October 2026. These are energy charges only; billing and delivery costs are added.

What the UCA says about the RoLR:

• It applies automatically to residential, small business and farm customers who were on the RRO, and to new customers who do not choose a retailer.
• You can leave the RoLR at any time without penalty.
• The UCA must notify RoLR customers by email or mail; you cannot opt out of the notices, but they require no action.
• Roughly a quarter of residential consumers buy electricity through the RoLR, according to the UCA.

The RoLR applies only to electricity. Natural gas customers without a contract stay on their distributor area's Default Rate Tariff (DRT), which is approved by the Alberta Utilities Commission and can change monthly.

What a competitive retailer offers

Licensed retailers sell the energy portion of your bill. Your wires company (the distributor) still delivers it and its delivery charges, approved by the AUC, apply whoever your retailer is. Typical retail plan types:

Retailers can also charge a fixed monthly administration fee. Two plans with the same ¢/kWh can differ by a few dollars a month because of it.

How to compare a retailer plan with the RoLR

1. Annual kWh. Get 12 months of usage from your bill or retailer account.
2. Energy cost on each option. kWh × ¢/kWh.
3. Add the admin fee for each option × 12.
4. Compare over the same period. A three-year fixed contract signed in late 2026 runs into 2027–2029, when the RoLR will be a different number.
5. Check exit terms in case you want to leave.

Worked example (illustrative, not a real offer): 7,200 kWh a year. RoLR in the EPCOR area: 7,200 × 12.01¢ = $864.72 for energy, plus the RoLR provider's admin charge. A hypothetical fixed plan at 11.5¢ with a $7.50 monthly admin fee: 7,200 × 11.5¢ = $828.00 + $90.00 = $918.00. The fixed plan costs $53.28 a year more than the RoLR energy charge, so it only wins if the admin charges on your RoLR bill add up to more than that; read them on your current bill. A plan at 10.9¢ with the same fee would cost $784.80 + $90 = $874.80, close to the default. Use the contract payback tool to include an exit fee or sign-up credit.

Switching and the cooling-off period

According to the UCA:

• To switch, contact the new retailer; it arranges the transfer.
• Every competitive retailer has a 10-calendar-day cooling-off period in which you can cancel for any reason without penalty.
• A switch can take 10 to 90 calendar days to complete; you pay the previous retailer until then.
• Check with your current retailer whether it requires notice or charges an exit fee.
• Pay the final bill from the old retailer; credits are refunded but cannot be moved between retailers.

See our full guide to cancellation rights.

What to check for 2027

Because the current RoLR period ends on 31 December 2026, the price for the next period is set through a process overseen by the AUC. Before you sign a long contract in late 2026, look up the RoLR approved for 2027 onward on the UCA's default rates page. If it is not yet published when you read this, compare offers both against the current rate and against a range of plausible values, and favour plans with modest exit fees.

Mistakes to avoid

• Signing at the door or by phone without comparing. Ask for the contract in writing and use the cooling-off period.
• Ignoring the admin fee. On low usage it can outweigh a lower energy price.
• Assuming the RoLR is expensive. It is a stable, regulated default; competitive plans may be higher or lower.
• Forgetting gas. Your gas default (DRT) changes monthly and is a separate decision.

For the lines added on top of the RoLR, read delivery vs commodity charges; for gas defaults, see natural gas rates after the carbon charge.

FAQ

Is the Rate of Last Resort bad to be on?

No. The UCA describes it as a stable rate you can choose. The notices simply tell you competitive options exist.

Can I go back to the RoLR after a contract?

Yes. When a contract ends or you cancel, you return to the default unless you sign a new one; check exit fees first.

Does the RoLR include delivery charges?

No. Transmission, distribution, riders and local access fees are separate lines on every Alberta bill.

Who do I contact with a dispute?

Your retailer first, then the UCA mediation team (310-4822 in Alberta).

Sources

• Utilities Consumer Advocate — Rate of Last Resort, default rates table, switching guidance and mediation
• Alberta Utilities Commission — rate decisions for distributors and the RoLR
• Market Surveillance Administrator — retail market compliance
• Alberta King's Printer — Electric Utilities Act and Rate of Last Resort Regulation