The Rate of Last Resort
The Rate of Last Resort (RoLR) replaced the Regulated Rate Option (RRO) in Alberta for electricity consumers effective January 1, 2025.
Why was this change made?
This change was made to ensure stability and predictability for consumers on the default rate and to increase awareness among consumers.
How it works:
The RoLR is reviewed and approved by the Alberta Utilities Commission (AUC) and will remain in place for two years.
Every two years, the rate will be re-evaluated. Any proposed rate adjustments cannot normally exceed 10% of the existing rate.
What should consumers do if they are contacted by the UCA:
The UCA contacts consumers on the RoLR through email or traditional mail.
Notification of being on the RoLR requires no action from consumers. This is an opportunity for consumers to explore competitive rate options and switch to a competitive plan if they are able and willing to do so.
FAQ:
Who does this change affect?
The RoLR was applied to all consumers (residential, small business, and farm) who were on the RRO. New electricity consumers who do not sign up for a competitive plan will automatically be on the RoLR.
How can consumers tell if they are on the RoLR?
Consumers can check their electricity bill for the “Rate of Last Resort” or “RoLR” labels.
What is the rate currently?
To see the RoLR for January 1, 2025 – December 31, 2026, head to our default rates page.
Does the RoLR apply to both electricity and natural gas?
The RoLR only applies to electricity consumers. Those currently on the Default Rate Tariff for natural gas will not be affected.
Can consumer stop receiving notices or opt out of notifications?
No. Consumers on the RoLR must be notified according to the RoLR Regulation.
How can consumers switch retailers?
Learn more about your options by using the Cost Comparison Tool, check out tips on switching retailers. If consumers need help, they can contact the UCA Mediation Team.
How does the UCA collect consumer's contact information?
The UCA Regulation allows retailers to share consumer information with the UCA.
Do consumers need to switch from the RoLR?
There is no requirement to switch from the RoLR. Consumers will be provided with information about how to switch from the RoLR if they are willing and able to do so.
What can consumers do if they believe they received a notification in error?
If consumers receive the notification but have switched off the RoLR, no further action is needed. If consumers received the notice but believe they were never on the RoLR, they can call their retailer. If consumers have questions, reach out to the UCA Mediation Team.
What can consumers do if they received a notification, but there are no competitive options available?
The notification requires no action by consumers; however, the UCA encourages Albertans to continue checking the Cost Comparison Tool to see if new options become available.
Is it bad to be on the RoLR?
No. The RoLR is a stable rate for consumers to choose. Consumers may have competitive options available.
How many people are on the RoLR?
This number varies monthly but approximately 26 per cent of residential consumers, 29 per cent of commercial consumers and 40 per cent of farm consumers purchase electricity through the RoLR.
Are there fees for leaving the RoLR?
Consumers can leave the RoLR at any point without penalty. Use the Cost Comparison Tool to look at the available options and check out tips for switching retailers.
Where can consumers go with questions?
The UCA Mediation Team is here to answer any questions regarding the RoLR. Send the UCA an email at ucahelps@gov.ab.ca or phone 310-4822 (in Alberta) or 1-888-644-6608 (outside Alberta), and select option 3.
