Utilities in Alberta
In Alberta, you typically have two options when purchasing electricity and natural gas. You can stay on the Regulated Rate Option (RRO), or you can sign a contract with a Competitive Retailer to secure a Competitive Rate for your energy (electricity and natural gas). Depending on where you live, you may receive water through your municipality or a private utility.
Regulated Retailers
If you have not signed a contract for natural gas or electricity, assume you are being served by a Regulated Retailer. In this scenario, the rates you pay per unit of energy will change each month. The rates are reviewed and approved by the Alberta Utilities Commission (AUC) in Alberta and reflect current market prices. This means that the amount you pay will fluctuate based on various conditions, such as natural disasters that could impact the price of certain resources. Sometimes, you'll save money on energy bills. Other times, you'll end up paying more.
Potential benefits of a Regulated Retailer
- There is no need to sign a contract
- Marketing costs are not built into the rate
- You won’t pay early exit fees for cancelling your services
- If rates drop, you share in the savings
- The regulated rate reflects current market prices
Potential risks of a Regulated Retailer
- Because the regulated rate reflects current market prices, it will fluctuate monthly. Some months prices may be higher, followed by lower prices the next month. This can make budgeting more difficult.
- With a Regulated Retailer, you cannot bundle your services.
Competitive Retailers
If you choose a Competitive Retailer, you and the retailer will enter into a contract for an agreed upon price and length of time. During this time, your energy rates will be either fixed, variable, or a combination of both.
With a fixed rate, your bills will still vary each month but the price you pay per unit of energy (per kilowatt-hour (kWh) of electricity and/or per gigajoule (GJ) of natural gas) will remain the same, or "fixed". If you select a fixed rate, your utility company is guaranteeing that your utility rate will stay the same for a specified period of time.
With a variable rate (also known as a floating rate), energy prices are based on current market conditions for electricity and natural gas. This means that the price you pay per kWh of electricity and/or per GJ of natural gas will depend on how much electricity or natural gas currently costs.
With a fixed rate, your bills will still vary each month but the price you pay per unit of energy (per kilowatt-hour (kWh) of electricity and/or per gigajoule (GJ) of natural gas) will remain the same, or "fixed". If you select a fixed rate, your utility company is guaranteeing that your utility rate will stay the same for a specified period of time.
With a variable rate (also known as a floating rate), energy prices are based on current market conditions for electricity and natural gas. This means that the price you pay per kWh of electricity and/or per GJ of natural gas will depend on how much electricity or natural gas currently costs.
Potential benefits of a Competitive Retailer
- Locking in a price for a specific term can provide peace of mind
- Fixed prices can protect you against sudden market rate increases from fluctuations in the natural gas market
- You can bundle your services
Potential benefits of an Independent Gas Marketer
- Marketing costs are built into the rate
- You will pay early exit fees for cancelling your services
- If rates drop, you don’t share in the savings
Water and sewage services
Depending on whether you live in an urban or rural community, water and sewage services will be provided by either your municipality (if you live in an urban center) or by a private utility (for rural communities).
For more information, visit your local municipality's website.