What you need to know about the Rate of Last Resort (RoLR)

We’ve laid out all the info you need to understand Alberta’s changes to electricity rates.

What is the Rate of Last Resort?

In January 2025, the Rate of Last Resort became the new default electricity rate in Alberta, replacing the Regulated Rate Option (RRO). Unlike the RRO which adjusted monthly, the Rate of Last Resort is a fixed rate for a two-year period with a potential increase of up to 10% after that term.

While the Rate of Last Resort is a fixed rate, it doesn’t necessarily guarantee that the rate will stay the same within that two-year term. If RoLR providers decide they’re not meeting their financial goals, the government can reset the rate to a higher price within the two-year term. This means you could see your bills go up unexpectedly, just like they did with the RRO.
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Exploring more affordable and flexible plans with competitive retailers like ATCO Energy could offer the stability and peace of mind you need. Our fixed rates are called ‘guaranteed rates’ because they will not change for the duration of your term.
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The Rate of Last Resort will impact over 450,000 homes and businesses* across the province.

How will this change affect me?

This plan automatically applies to anyone who hasn’t chosen a competitive retailer for their home or business energy needs.

The Rate of Last Resort is not the most affordable electricity rate available, and includes extra fees to help offset the debt of other consumers.

Am I on the RoLR?

You’re likely on the Rate of Last Resort if you haven’t entered into an agreement with an energy retailer, like ATCO Energy.

The easiest way to find out is to look at your energy bill. If you see ‘Rate of Last Resort’ or ‘RoLR’ on your statement’s electricity section, or if your bill comes from a company with ‘regulated services’ in their name, then you know you’re still on the RoLR.

Switch and save over $750

Choose a Guaranteed Rate Plan for electricity and natural gas and enjoy predictably low rates and no hidden fees for 3 years.**

FrequentLY ASKED questions

Rate of Last Resort FAQs

What’s the reason for the RRO name change?

The Government of Alberta believes changing the name of the Regulated Rate Option (RRO) to the Rate of Last Resort (RoLR) better reflects its true nature. The term ‘regulated’ might have lead some to mistakenly believe it was immune to market fluctuations.

By renaming it, the government aims to make it clear that this is a default option, prompting Albertans to explore their other options, like fixed-rate plans, which could offer more stability and potential savings.

Do I need to switch from the RRO/Rate of Last Resort?

There’s no requirement to switch but doing so may save you money and provide more flexibility in managing your energy expenses.

Are natural gas rates affected by this change?

No, the Rate of Last Resort only impacts electricity rates. But choosing a competitive retailer for your natural gas offers similar saving opportunities.

How can I prepare for the transition?

You have the power to choose a better option. Start by exploring competitive energy plans that offer lower rates and more flexibility than the Rate of Last Resort.

We provide a range of options that can be tailored to your needs, allowing you to make an informed choice.

Switching is easy – we’ll handle the breakup with your current provider and you won’t experience any service interruption.

Explore your energy options

It only takes minutes to start saving with one of our electricity and natural gas plans.

*Information sourced from Alberta Market Surveillance Administrator data disclosed in July 2024.

**Savings based on the difference between the Rate of Last Resort average of 12.03¢/kWh plus $12.40/month admin fee and ATCO Energy’s Guaranteed Rate electricity plus monthly admin fee, which is 36% lower, equaling over $750 in savings over a 3-year period. Estimated home electricity consumption for this calculation was 7,200 kWh/year.