Alberta Electricity Rates: How to Choose and Manage Savings
If you live in Alberta, you're likely aware that electricity rates here are quite different from the rest of Canada. The province operates a deregulated electricity market, which means consumers can choose between various retailers and plans. This flexibility can lead to savings, but also confusion.
In this guide, we dive into Alberta's electricity rates. We explore the province’s unique market structure, present current Rate of Last Resort (RoLR) prices across key cities, compare fixed and variable plans, break down the factors influencing pricing, and offer proven tips for lowering your monthly electricity bills. Dive in now!
Alberta's Electricity Market Structure
Alberta’s electricity market is distinctively competitive, with a deregulated system that separates generation, transmission, and retail services. Private companies generate electricity and sell it in a real-time wholesale market where prices are set by supply and demand. While transmission and distribution remain regulated to ensure reliability, the Alberta Electric System Operator (AESO) oversees system operations.
Albertans have three electricity rate options:
Fixed-rate contracts: Offer price stability for the contract term.
Variable-rate contracts: Change the rate monthly based on market conditions.
Rate of Last Resort (ROLR): The government-regulated default option for those without a chosen provider, with rates approved by the Alberta Utilities Commission.
This open market model for electricity rates Alberta fosters competition, encourages innovation, and gives consumers the freedom to choose a plan that suits their budget and usage. Customers can explore and compare plans through the Utilities Consumer Advocate (UCA) website to make informed decisions.
Current RoLR Rates Across Alberta
As of January 1, 2025, Alberta's Rate of Last Resort (RoLR) serves as the default electricity rate for customers who haven't selected a competitive energy plan. This fixed-rate option, replacing the former Regulated Rate Option (RRO), is set for a two-year term and approved by the Alberta Utilities Commission (AUC). The RoLR rates vary slightly depending on the service area and provider:
Here are the current RoLR rates across major Alberta cities from January 1, 2025, to December 31, 2026:
City | Regulated Utility | RoLR Rate (2025–2026) |
Calgary | ENMAX Energy | 12.06 ¢/kWh |
Edmonton | EPCOR Energy Alberta | 12.01 ¢/kWh |
Red Deer | Direct Energy Regulated Services (DERS) | 12.02 ¢/kWh |
Lethbridge | Direct Energy Regulated Services (DERS) | 12.02 ¢/kWh |
Grande Prairie | Direct Energy Regulated Services (DERS) | 12.02 ¢/kWh |
St. Albert | Direct Energy Regulated Services (DERS) | 12.02 ¢/kWh |
These rates are applicable to residential and small business customers consuming less than 250,000 kWh annually. They exclude delivery charges and administration fees. For more information or to compare electricity plans, visit the Utilities Consumer Advocate (UCA) website.
Fixed vs. Variable Electricity Rates: Making the Right Choice
Another essential aspect of Alberta’s electricity system is the ability to choose between fixed and variable pricing plans. Each has its advantages and drawbacks depending on your household needs, energy habits, and risk tolerance.
Fixed Rates: Predictability Over Flexibility
Fixed-rate plans lock in a set price per kWh for the duration of your contract, typically ranging from 6 months to 5 years. These plans offer budget stability, as your rate won't fluctuate with market conditions. They’re ideal for consumers who prefer predictable bills or want to avoid the risk of price spikes.
However, during periods when market prices fall, you might pay more than you would on a variable plan. Cancellation fees may also apply if you switch providers before your contract ends.
Variable Rates: Potential Savings with Risk
Variable-rate plans are tied to the wholesale electricity market and can change monthly. This means you might benefit from lower prices during periods of excess supply or reduced demand. These plans often have no long-term contracts, offering more flexibility to switch providers.
The downside? You’re exposed to price volatility. During winter cold snaps or summer heatwaves, demand surges and so do electricity rates—sometimes dramatically. Variable plans are better suited for consumers who closely monitor the market or have backup systems like portable power stations in place.
Factors Influencing Electricity Rates in Alberta
Now that we’ve covered pricing options, it’s important to understand what drives electricity prices Alberta. The cost of electricity in Alberta is not arbitrary, and several interconnected factors influence it
Supply and Demand: Electricity prices respond directly to supply and demand. During high-demand periods like winter evenings or heatwaves, wholesale prices can skyrocket. Conversely, rates may drop when renewable output is high and usage is low.
Natural Gas Prices: Alberta relies heavily on natural gas for electricity generation. When natural gas prices rise, electricity costs usually follow. As a result, fluctuations in fuel prices directly impact variable electricity rates.
Transmission and Distribution Costs: Even in a deregulated market, the infrastructure that delivers power to your home is still regulated. Utilities charge for using their transmission and distribution networks, and these charges are baked into your total rate, regardless of your provider.
Carbon Pricing and Environmental Regulations: Carbon pricing policies such as Alberta’s TIER program affect the cost of electricity production, especially for fossil-fuel-based generation. Over time, this can shift market prices and influence the competitiveness of renewable energy options.
Tips for Managing Your Electricity Costs
A wide range of external factors impact Alberta electricity rates, but that doesn’t mean you’re powerless. Here are effective and proven strategies to help you control and reduce your electricity bills.
Compare Retailers and Lock in Low Rates
Don’t stick with the default RoLR provider without shopping around. Alberta has numerous licensed electricity retailers offering a wide range of plans. Providers like ENMAX Energy, ATCO Energy, and EPCOR (Encor) often promote competitive fixed-rate deals, while others like Spot Power and Direct Energy offer flexible variable-rate plans or green energy options.
Use comparison tools such as the Alberta Utility Consumer Advocate to evaluate current rates, contract terms, and available promotions. Locking in a fixed rate during low-price periods can protect you from sudden market spikes, helping you budget your electricity costs with confidence.
Monitor and Reduce Peak Usage
Peak demand hours—typically between 4 p.m. and 7 p.m.—are when prices and grid stress are highest. Shift high-energy activities such as laundry, dishwashing, and charging electronics to off-peak times. Using smart home devices to automate energy-saving behaviors can further improve efficiency.
Invest in Whole-Home Backup Power Solutions
A third way to control costs and gain energy independence is by investing in a whole-home backup power system. These systems reduce your reliance on the grid, especially during peak pricing periods or outages.
One powerful option is the EcoFlow DELTA Pro Ultra Whole-Home Backup Power system. With up to 90kWh expandable capacity and 7.2kW to 21.6kW output, this versatile solution is a smart long-term investment for energy-conscious Albertans to reduce electricity bills.
Optimize Home Insulation and Efficiency
A large portion of your electricity usage comes from heating, cooling, and inefficient appliances. Start by sealing leaks, upgrading insulation, and installing a programmable thermostat. Swapping out incandescent bulbs for LEDs and upgrading to ENERGY STAR-rated appliances can also lead to noticeable monthly savings.
EcoFlow DELTA Pro Ultra Whole-Home Backup Power
Conclusion
Alberta electricity rates can be confusing, but understanding how they work makes a big difference. From its deregulated market to regulated options like the RoLR, there are plenty of choices, but also a lot to consider. Prices change based on supply, demand, and fuel costs, so staying informed is key.
By learning how rates are set and choosing a plan that fits your needs, you can avoid surprises on your bill. Add in smart habits, energy-efficient upgrades, or whole home backup power solutions, and you’ll be well on your way to lowering your electricity costs.
FAQs
What is the cost per kWh of electricity in Alberta?
Electricity costs in Alberta vary by provider and plan. As of 2023, the average residential rate is $0.258 per kWh, which equates to about $258 per month based on 1,000 kWh usage.
Which is better, EPCOR or Direct Energy?
Both EPCOR and Direct Energy offer regulated and competitive electricity plans. EPCOR primarily serves Edmonton, while Direct Energy covers multiple Alberta regions. EPCOR is known for stable pricing and customer service; Direct Energy offers more flexible plan types. The better choice depends on your location, consumption habits, and risk tolerance.
What is the current rate of last resort in Alberta?
The RoLR is the government-regulated electricity rate for customers without a competitive contract. As of 2025–2026, rates are around 12.01 to 12.06 ¢/kWh depending on the utility provider and city. It offers pricing stability through 2026 but may not always be the lowest-cost option.
Should I lock in the electricity rate in Alberta?
Locking at a fixed rate can be smart if you prefer price stability and want to avoid market volatility. However, if you’re comfortable with price fluctuations and can monitor trends, a variable rate might yield savings during low-demand periods. Your choice should reflect your budget and risk preferences.