Talking Energy Talk
Regulated Rate Option
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If you have chosen not to enter into a contract with an electricity retail supplier, you are on the Regulated Rate Option (RRO).
The RRO is available to small electricity consumers: residential, farm, irrigation and commercial customers that consume less than 250,000 kilowatt-hours per year.
Beginning July 1, 2010, the RRO was adjusted to reflect current market conditions, and the portion of the regulated rate set by short-term pricing increased to 100 per cent from 80 per cent.
Before July 1, the RRO was calculated using a mixture of both short- and long-term market prices for electricity. Now, the regulated rate is based entirely on the next month’s projected market price.
This adjustment is the last of a five-year transition announced by the government in 2005. Over this time, the long-term portion of the regulated rate has been phased out.
This will bring electricity billing more in line with natural gas billing practices, the government says, with the regulated rate changing month-to-month just like the fluctuating rate for gas. As the economic recovery continues, electricity prices could rise due to higher energy demands. Price fluctuations sometime spell trouble for more-vulnerable Alberta citizens with low or fixed incomes. However, there are alternatives to the RRO. While Alberta consumers continue to have the option of receiving the regulated rate, they may also seek longer term price stability or security through a contract with a licensed retailer. There are no deadlines for making this choice.
A list of licensed retailers is available from the Utilities Consumer Advocate at www.ucahelps.alberta.ca or by calling toll-free 310-4UCA (4822).
