What you need to know about the Rate of Last Resort (RoLR)
As your trusted energy source, we want to ensure you’re fully prepared for Alberta’s upcoming changes in electricity rates.
What is the Rate of Last Resort?
Starting January 2025, the Rate of Last Resort is set to become the new default electricity rate in Alberta, replacing the Regulated Rate Option (RRO). Unlike the RRO which currently adjusts monthly, the Rate of Last Resort will provide a fixed rate for a two-year period with a potential increase of up to 10% after that term.
While the Rate of Last Resort offers a fixed rate model, it doesn’t necessarily guarantee that the rate will stay fixed within that two-year term. If providers indicate they’re not meeting financial goals, the government can reset the rate to a higher price within the two-year term. This means you could see your bills go up, just like they did with the RRO.
Exploring more affordable and flexible plans with competitive retailers like ATCOenergy could offer the stability and peace of mind you need. Our fixed energy rates are called ‘guaranteed rates’ because they will not change for the duration of your term.
The Rate of Last Resort will impact over 450,000 homes and businesses* across the province.
How will this change affect me?
This plan will automatically apply to anyone who hasn’t chosen a competitive energy retailer for their residence or business. If you are currently on the RRO for electricity, you will automatically switch to the Rate of Last Resort.
However, this new plan could mean higher energy bills since it includes extra fees to help offset the debt of other consumers.
Am I on the RRO?
You’re likely on the RRO (soon-to-be Rate of Last Resort) if you haven’t entered into an agreement with an energy retailer, like ATCOenergy.
The easiest way to find out is to look at your energy bill. If you see the word ‘regulated’ or ‘RRO’ on your statement, or if your bill comes from a company with ‘regulated services’ in their name, then you know you’re still on the RRO.
You could have saved $400 annually
ATCOenergy customer saved more over the past three years vs the Regulated Rate Option**
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Rate of Last Resort FAQs
What’s the reason for the RRO name change?
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The Government of Alberta believes changing the name of the Regulated Rate Option (RRO) to the Rate of Last Resort (RoLR) will better reflect its true nature. The term ‘regulated’ might lead some to mistakenly believe the rate is safeguarded, when in fact, it’s not immune to market fluctuations.
By renaming it, the government aims to make it clear that this is a default option, prompting Albertans to explore their other options, like fixed-rate plans, which could offer more stability and potential savings.
Do I need to switch from the RRO/Rate of Last Resort?
There’s no requirement to switch but doing so may save you money and provide more flexibility in managing your energy expenses.
Are natural gas rates affected by this change?
No, the Rate of Last Resort only impacts electricity rates. But choosing a competitive retailer for your natural gas offers similar saving opportunities.
How can I prepare for the transition?
You have the power to choose a better option. Start by exploring competitive energy plans that offer lower rates and more flexibility than the Rate of Last Resort.
ATCOenergy provides a range of options that can be tailored to your needs, allowing you to make an informed choice before the transition takes place.
Switching is easy – we’ll handle the breakup with your current provider and you won’t experience any service interruption.