Albertans who do not have a contract with an electricity retailer are on the RRO. The RRO rate fluctuates each month based on market price for electricity in Alberta, which depends on supply and demand across the province.
What is the current regulated rate for electricity in Alberta?
At that time, electricity prices were around 2.88 cents per kilowatt-hour (kWh).
2019 Electricity Regulated Rates in ¢/kWh.
| Retailer | EPCOR | ENMAX |
|---|---|---|
| February | 6.8 rate cap (7.189) | 6.8 rate cap (7.009) |
| March | 5.991 | 5.914 |
| April | 6.8 rate cap (6.981) | 6.067 |
| May | 6.8 rate cap (6.990) | 6.390 |
What does regulated rate option mean?
The Regulated Rate Option (RRO) is offered to residential and small business customers who consume less than 250,000 kWh/year. The Regulated Rate for electricity fluctuates every month to reflect changes in the wholesale electricity market using a process approved by the Alberta Utilities Commission (AUC).
What is the regulated rate for natural gas in Alberta?
The Regulated Rates are reviewed and approved by the Alberta Utilities Commission (AUC) and can change from month to month.
| 2021 Natural Gas Regulated Rates in $/GJ | ||
|---|---|---|
| Retailer | Direct Energy Regulated Services | Apex Utilities (Formerly AltaGas Utilities) |
| January | 2.784 | 2.462 |
| February | 2.766 | 3.094 |
| March | 4.102 | 4.073 |
What is an RRO rate?
Any business or residence that uses less than 250,000 kWh per year can choose to pay the regulated rate. This regulated electricity rate is known as the RRO, or Regulated Rate Option.
What is the floating rate for electricity in Alberta?
Rates float with the current market price plus 1.50 cents/kWh for electricity. Rates float with the current market price plus $2.00/GJ for natural gas and 1.50 cents/kWh for electricity.
Will electricity prices go up in 2022 in Alberta?
Forward pricing currently suggests index residential rates will come in around 9.5 cents per kWh for April and May. March averaged about 8 cents/kWh. At this point, the forward market rates suggest the balance of the 2022 calendar year could average around 10 cents per kWh.
Should I lock in my natural gas rate Alberta?
We highly recommend locking in a fixed electricity rate for your homes if you have not done so already. The forward market for natural gas is trading around $7.00/GJ for June and July. The balance of calendar 2022 is trading around $7.00/GJ also. This being the case, we highly recommend locking in a fixed rate for gas.
What does it mean to have regulated electricity?
What is a regulated electricity market? A “regulated electricity market” contains utilities that own and operate all electricity. From the generation to the meter, the utility has complete control. The utility company owns the infrastructure and transmission lines then sells it directly to the customers.
What is the floating gas rate in Alberta?
Gas Alberta Inc.’s variable rate of $0.24/GJ applies through FY2023.
Why are natural gas prices so high in Alberta?
Higher Oil and Gas Demand
An increase in demand for Canadian natural gas exports has been one such factor behind the increases in natural gas. As the economic activity across the globe picks up, the need for natural gas also increases fast.
Is variable or fixed rate better for natural gas?
Both types can offer unique benefits to electricity and natural gas customers. Typically, fixed-rate energy plans are a better option for anyone who wants some consistency and a better basis to build a budget. With fixed energy rates, you may pay a little more for your energy to gain that price stability.
Why is Alberta’s gas prices so high?
Last Updated Oct 7, 2022, 10:34AM MDT. An expert says oil prices and refinery issues in various parts of the United States are causing Alberta’s average fuel prices to rise.
Is fixed or floating rate better for electricity?
Fixed-rate plans offer consistency for consumers and households. No matter what happens in the electricity market, you’ll always know how much you’ll be paying for your power. Especially in large homes that use a lot of energy, fixed-rate plans offer stability and peace of mind that a floating rate lacks.
What does Rro stand for in law?
RRO means Regulated Rate Option.
What is ATCO Advantage rate plan?
The ATCO Advantage rate is the market rate plan that provides more flexibility from month to month. This option allows you pay a daily fee to tap into wholesale pricing with no retail markups or administration fees. There may be spikes over time but, with this option, when rates are low, your bill will be lower.
Why are electricity rates so high in Alberta?
“It’s not just sort of expensive, these are record prices,” said Blake Shaffer, electricity market economist at the University of Alberta. Low supply, soaring demand, and reduced competitiveness are to blame for the jolt Albertans are seeing on their electricity bills, says a local economist.
Is it better to have a fixed or variable energy rate?
A variable rate means your energy price can vary during the plan. Fixed rate tariffs offer you security, and are often some of the cheapest deals. Though you will usually be tied in for at least a year and will need to pay fees if you want to exit the fixed deal.
Is it better to have fixed or variable energy 2022?
You will benefit from set rates that will protect you from energy price hikes and make it easier to take control of your utility bills. However, fixed tariffs can be more expensive and often come with large exit fees and other contractual conditions.
What is the price cap per kWh 2022?
The average unit price for dual fuel customers on standard variable tariffs subject to Ofgem ‘s price cap, paying by direct debit, is limited to: 34.0p/ kWh (pence per kilowatt hour) for electricity and 10.3p/ kWh for gas, inclusive of VAT, from 1 October 2022 through to March 2023.
What is the energy price cap per kWh 2022?
What’s the maximum charge for a single unit of electricity or gas from 1 October 2022? So, from 1 October 2022, if you’re on a standard variable tariff paying by direct debit, the average unit price will be frozen at 34.0p/kWh for electricity and 10.3p/kWh for gas (including VAT).