If you buy electricity in Alberta but have not chosen a competitive electricity plan, you may receive electricity through the Rate of Last Resort (RoLR).
In 2026, Alberta’s Rate of Last Resort is approximately 12¢/kWh, depending on the regulated provider serving your area. Competitive retailers may offer fixed electricity rates below the RoLR, but the advertised energy rate is not the only factor you should compare.
Here’s how the Rate of Last Resort works and how it differs from choosing a fixed electricity plan.
What Is the Rate of Last Resort in Alberta?
The Rate of Last Resort is Alberta’s default electricity rate for eligible residential and small business customers who have not signed a competitive retail electricity contract.
It replaced Alberta’s Regulated Rate Option (RRO) on January 1, 2025.
Unlike the former RRO, which could change monthly, the Rate of Last Resort was established for a two-year period. Current RoLR rates remain in place through December 31, 2026.
The exact rate depends on your service area and provider:
- EPCOR: 12.01¢/kWh
- Direct Energy Regulated Services: 12.02¢/kWh
- ENMAX: 12.06¢/kWh
These are energy rates and do not represent the total amount you will pay on your electricity bill.
What Is a Competitive Fixed Electricity Rate?
A fixed electricity rate is a retail plan where your energy rate is set for a specified term.
Rather than automatically receiving electricity through the Rate of Last Resort, Alberta customers can shop for a plan from a competitive electricity retailer such as Peace Power.
For example, if you choose a fixed rate of 7¢/kWh, that energy rate generally remains the same for the applicable term even if Alberta’s wholesale electricity market moves up or down.
This gives households and businesses more predictability when budgeting for electricity.
Rate of Last Resort vs. Fixed Rate: What’s the Main Difference?
The biggest difference is how you get your electricity rate and how that rate is established.
The Rate of Last Resort is the default option for eligible customers who have not chosen a competitive plan. A competitive fixed rate is a plan you actively select from an electricity retailer.
In 2026, another major difference is price. Alberta’s RoLR is currently around 12¢/kWh, while competitive fixed plans may be available at lower energy rates.
That makes it worth checking the competitive market rather than assuming the default rate is your only option.
Does a Lower Electricity Rate Mean a Lower Bill?
A lower energy rate can reduce the energy portion of your electricity bill, but it does not reduce every charge.
Your total Alberta electricity bill can also include:
- Transmission and distribution charges
- Rate riders
- Local access or franchise fees
- Retail administration fees
- GST
Transmission and distribution charges are associated with delivering electricity to your property and generally do not change simply because you switch electricity retailers.
This is why it is important to compare electricity plans using more than the advertised ¢/kWh rate.
How Much Could the Energy-Rate Difference Matter?
The impact depends on how much electricity you use.
Consider a household using 600 kWh of electricity per month.
At an energy rate of 12¢/kWh, the electricity itself would cost approximately $72 per month.
At 7¢/kWh, the same 600 kWh would cost approximately $42 per month.
That’s a difference of about $30 per month on the energy charge alone.
This is only an illustrative comparison. It does not include administration fees, transmission, distribution, rate riders, taxes or other applicable charges.
Your actual savings will depend on your electricity consumption and the plans available when you sign up.
Is the Rate of Last Resort a Fixed Rate?
In practical terms, the current RoLR provides a stable energy rate through the end of 2026, but it is different from signing a fixed-rate contract with a competitive retailer.
The Rate of Last Resort is a regulated default service. A competitive fixed plan is an electricity product you actively choose based on its rate, term, fees and conditions.
Customers comparing the two should therefore look at both price and plan terms rather than treating them as identical products.
Should I Leave the Rate of Last Resort?
Whether you should switch depends on the competitive electricity plans currently available to you.
If you are on the Rate of Last Resort, compare its energy rate with competitive offers and consider:
- The fixed electricity rate
- The length of the rate term
- Administration fees
- Cancellation or exit fees
- Other contract conditions
- Your average electricity consumption
If a competitive retailer offers a substantially lower energy rate with terms that suit you, switching could reduce the energy portion of your bill.
Can I Switch From the Rate of Last Resort to Peace Power?
Eligible Alberta customers can choose a competitive electricity retailer instead of remaining on the Rate of Last Resort.
Switching retailers does not mean changing the power lines, meter or distribution company serving your property. Your local distribution provider continues delivering electricity while your chosen retailer manages your retail electricity plan.
Peace Power offers fixed and variable electricity plans for Alberta homes and businesses.
What Happens to the Rate of Last Resort After 2026?
The current Rate of Last Resort pricing period ends on December 31, 2026.
New RoLR rates will be established for the next term, so customers currently using the default service should not assume today’s approximately 12¢/kWh rate will continue indefinitely.
This is another reason to periodically compare your electricity options rather than treating the default rate as a permanent plan.
Compare Alberta Electricity Rates Before You Choose
The Rate of Last Resort provides a default option for Albertans who have not selected a competitive electricity plan, but default does not necessarily mean cheapest.
In 2026, RoLR energy rates are around 12¢/kWh, while lower fixed rates may be available through Alberta’s competitive electricity market.
Before switching, compare the energy rate, administration fees, contract terms and cancellation conditions so you understand what you’re actually signing up for.
Compare Electricity Plans With Peace Power
Peace Power offers fixed and variable electricity plans for Alberta homes and businesses.
Check our current rates and plan terms to see how they compare with Alberta’s Rate of Last Resort.