The Rate of Last Resort is the default electricity rate for Albertans who haven’t chosen a competitive energy retailer. If you haven’t actively chosen a plan with a specific retailer, you are likely on the Regulated Rate Option which will transition to the RoLR. The RoLR is not a contract, and you are not locked in. Albertans are free to choose a plan with a competitive energy retailer or remain on the RoLR.
Regulated Rate Option
The City of Red Deer contracts ENMAX Energy to provide the Regulated Rate Option (RRO) to eligible customers in our service area.
NEW! Rate of Last Resort will be 12.06¢ per kWh
The Government of Alberta is changing the RRO rate on December 31, 2024 to the Rate of Last Resort (RoLR). Customers in Alberta are able to select a retail plan with a retailer of their choice. Those who do not or cannot will be automatically transitioned to the newly formed Rate of Last Resort on January 1, 2025. The Government of Alberta has stated that the name change to Rate of Last Resort better reflects the nature of the rate and reflects their ongoing consumer awareness initiatives.
Residential and small business customers who consume less than 250,000 kWh per year are eligible to receive electricity through the Regulated Rate Option which is provided by Enmax (403-310-2010) and based on our Regulated Rate Tariff.
Rate of Last Resort FAQs
Why the Change?
The Government of Alberta has decided to change the terminology from “Regulated Rate Option” to “Rate of Last Resort”, aiming to create clarity about the nature of this price. The previous term “regulated” could give the impression that the rate is safeguarded or controlled by specific regulatory measures, thereby suggesting a level of price stability. However, the reality is that the rate was still influenced by market fluctuations, which resulted in unpredictable costs for consumers.
The rebranding to “Rate of Last Resort” emphasizes that this option is essentially a fallback choice for consumers who may not have or qualify for a more advantageous rate plan. By making this change, the Alberta government is not only seeking to provide transparency regarding the nature of this rate but also to motivate Albertans to actively seek out energy provider rate plans from a retailer that could potentially offer better pricing and savings. This proactive approach encourages individuals and businesses to evaluate their energy options and choose the plan that best suit them.
When does it come into effect?
The Government of Alberta has mandated the change to the newly formed Rate of Last Resort (RoLR), effective January 1, 2025.
What is the difference between RRO and RoLR?
Unlike the RRO, which fluctuates monthly based on market conditions, the RoLR will be a fixed two-year price.
What do you need to do?
If you are currently on the RRO, you don't need to do anything to switch to the Rate of Last Resort. You will be automatically transitioned on January 1, 2025. However, you may want to consider exploring other electricity options, such as fixed-rate plans offered by competitive energy retailers, to see if you can find a better deal.
For more information on Alberta electricity rates and how electricity is governed in Alberta, please visit:
The current and historical RRO rates are shown below:
| Month | Energy Price ($/kWh) Residential | Energy Price ($/kWh) Commercial | Administration Charge ($/day) |
|---|---|---|---|
| December 2024 | 0.10434 | 0.09291 | 0.2498 |
| November 2024 | 0.09038 | 0.08001 | 0.2498 |
| October 2024 | 0.09244 | 0.08365 | 0.2498 |
| September 2024 | 0.10089 | 0.09285 | 0.2498 |
| August 2024 | 0.11625 | 0.10908 | 0.2498 |
| July 2024 | 0.10232 | 0.09581 | 0.2498 |
| June 2024 | 0.09658 | 0.09104 | 0.2498 |
| May 2024 | 0.09618 | 0.09202 | 0.2498 |
| April 2024 | 0.13168 | 0.12914 | 0.2498 |
| March 2024 | 0.12138 | 0.12055 | 0.2498 |
| February 2024 | 0.16714 | 0.16726 | 0.2498 |
| January 2024 | 0.17983 | 0.18141 | 0.2498 |
| December 2023 | 0.20491 | 0.20874 | 0.2498 |
*January is the first month of the Rate of Last Resort (RoLR). It is a fixed rate for two years. The one Rate of Last Resort is replacing the two Regulated Rate Option (RRO) rates, effective January 1, 2025.