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The government of Alberta recently implemented a temporary price cap for Regulated Rate Option (RRO) electricity consumers to limit their exposure to high electricity bills during the winter months. The winter price cap limits the amount per kilowatt-hour that RRO providers can charge consumers, with the difference to be paid back by RRO users over a 21-month period. The policy is intended to ensure RRO pricing is affordable through the heavy-use winter months.
Customers who receive service under an RRO rate will not be charged more than 13.5 cents per kilowatt hour in January, February and March 2023. Any costs above the 13.5 cent price ceiling will be deferred until rates drop and will be repaid over 21 months from April 2023 to December 2024.
Additional information can be found on the government of Alberta’s Affordability Action Plan website.
The rate cap will be automatically applied to eligible consumers’ electricity bills, beginning on their January 2023 bill.
The RRO is a rate plan for electricity consumers in Alberta that allows them to pay a regulated price for their electricity rather than a competitive price. The RRO energy charge (or commodity charge) on your bill is determined monthly according to energy price-setting plans approved by the AUC. These monthly rates are based on wholesale electricity prices for the month and will fluctuate between months based on supply and demand in the electricity marketplace. RRO rates can be found on the AUC’s current electricity rates webpage.
In Alberta, customers have a choice of energy retail service providers and can choose between a fixed, variable or regulated rate option (RRO).
If a customer does not choose a retail contract for service, that service is typically provided by the regulated service provider and will be charged a variable RRO rate. To compare rates please visit the UCA website or call 310-4822.
The energy charge on your bill is determined by the open and competitive wholesale energy-only electricity market. Utility customers in Alberta have a choice of retail service providers and can evaluate their choice of providers though the Utilities Consumer Advocate website.
The charge on your utility bill is based on your consumption for the billing period, which is calculated per kilowatt-hour (kWh). This charge does not include any costs or services related to delivery (transmission and distribution) of the energy to your home or business.
Additional programs and financial relief information can be found on the Government of Alberta’s Affordability Action Plan website.
In addition to government of Alberta’s programs, there are several ways that residents of Alberta can take control of their utility costs. These include conserving energy and water, shopping around for the best rates and plans, and taking advantage of time-of-use pricing, which allows consumers to pay lower rates for electricity during off-peak hours. Visit the Utilities Consumer Advocate’s Tips to Save Money on Utility Bills website to learn more.