Alberta Electricity Rates

Fixed Electricity Rates

Consumers who choose a fixed electricity rate will pay the same price per kilowatt hour (kWh) regardless of what the actual market price is. At first glance it may appear to be an attractive offer because price certainty is something that a lot of consumers value. However, what many fail to realize is how much the price certainty is actually costing them. Additionally, a fixed electricity rate will not keep a utility bill stable since usage changes every month. 

Electricity rates have recently stabilized within Alberta and consumers who choose fixed rates do not get to benefit from low market prices. Consumers on fixed rates pay the same price despite how low the market goes.  

Explanation of Regulated Energy Rates in Alberta

In each area there is a designated provider for electricity and they are called the regulated provider. Many people also refer to them as the default provider. It means that if you do not choose a provider for electricity at your residence you will start getting billed by the default provider. The rates the default provider charges are determined, in large part, by the government and not the actual market. Unfortunately, a large part of Alberta is serviced by large corporations that have their head offices overseas. Customer care complaints are very common and people report getting their electricity service disconnected over billing errors. The customer then has to pay for the service to be reconnected. Additionally, the default provider for electricity is almost never able to provide natural gas, so customers are forced to deal with two providers for their energy services.

Floating Rates (variable rates) Are a Very Popular Option Within Alberta

At Regional Energy our rate for electricity is floating which means it is based on the monthly market price of electricity (which fluctuates). Since we are not a regulated provider we can set our rates as low as we want in order to attract and retain customers. The floating electricity prices that competitive rate retailers charge are a combination of the market price of electricity plus a “transaction fee”. The transaction fee is the retailer’s margin. 

At Regional Energy our transaction fee is extremely competitive and this keeps our prices low. It’s also one of the reasons why we are growing so quickly. We base our cost of electricity on the data published by AESO (Alberta Electric System Operator) to ensure consumers receive fair prices. Although there are other competitive rate retailers in the province Regional Energy offers electricity service with no contract, no cancellation fee, low rates, and local customer care. Many other retailers cannot make these same claims.

Visit our electricity page to see how our rates compare with competitor rates

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