The Hidden Cost of Not Choosing Your Electricity Plan
You might have noticed a change in your electricity bill recently – or worse, you might not have. Alberta's electricity market has made a quiet but significant shift that will cost you money if you don't pay attention.
The shift from the Regulated Rate Option (RRO) to the Rate of Last Resort (ROLR) system isn't just administrative jargon. It's a fundamental change in how your electricity costs are determined, and it puts you in the driver's seat whether you want to be there or not.
Here's what this means for your wallet: if you don't actively choose an electricity retailer, you'll likely pay more – potentially hundreds of dollars more per year.
For years, the Regulated Rate Option served as a reasonable default for consumers who didn't actively choose a retailer. It was designed to be fair even for passive consumers. That safety net is changing.
The shift toward the ROLR model sends a clear message from the government: they want consumers to actively choose their electricity retailer rather than defaulting to a regulated option. It's a market that now demands your participation.
This change puts more responsibility on you – responsibility that you might not feel prepared for. After all, comparing electricity plans isn't exactly a favorite weekend activity for most Albertans.
The ROLR rates aren't designed to be competitive. They're typically higher than what you'd find by actively shopping the market. Currently, these rates hover around 11.866¢/kWh for electricity, considerably higher than many competitive fixed-rate offers available to those who shop around.
The typical pattern goes like this: Your retailer exits, you're transferred to the ROLR provider, and then... nothing changes until you make it change. Inertia takes over. Months pass. The higher rates continue.
This "behind the scenes" approach protects consumers from service disruptions but can inadvertently lead to higher bills if you don't take action.
The government has created a market that rewards engagement and penalizes passivity. But how many of us have the time, knowledge, or inclination to become electricity market experts?
This is precisely why Earnest Energy exists. The gap between the government's expectation of an engaged consumer and the reality of busy lives creates a need for simplification and guidance. We translate the complex market into clear choices that match your specific needs.
In many ways, the ROLR exemplifies both the strengths and weaknesses of Alberta's competitive electricity market. It provides essential consumer protection while simultaneously revealing how easily consumers can end up paying more than necessary when they aren't actively engaged.
If you're wondering how the ROLR actually works: When your retailer can't fulfill their obligations, you're automatically transferred to a default provider designated for your area. In ATCO Electric's service area, it's Direct Energy; in ENMAX's territory, it's ENMAX Energy; and in FortisAlberta's zone, it's EPCOR Energy. These companies are required by regulation to take you in.
The next time you pay your electricity bill, take a moment to check which company it's going to. If you've never actively chosen a retailer or if your retailer has changed without your knowledge, you might be paying more than necessary.
Your power stays on in Alberta's evolving market – but the responsibility to find fair rates has shifted firmly onto your shoulders. The question is: will you navigate this complexity alone, or use tools designed to simplify the journey?
Ready to Find Your Perfect Plan?
See how our personalized approach can simplify your electricity decision in just a few minutes.