On January 1, 2025, the Rate of Last Resort (RoLR) has replaced the Regulated Rate Option (RRO) for electricity customers in Alberta. Here are some answers to frequently asked questions.
Why the Change?
The shift to the RoLR aims to provide more stability and predictability for customers who were previously on the regulated rate. It also seeks to increase consumer awareness of available options that offer more value, such as Xoom Energy.
How the RoLR Works
The Alberta Utilities Commission (AUC) reviews and approves the RoLR, which will remain fixed for two years. After each two-year period, the rate is reassessed. Any proposed adjustments are generally capped at a 10% increase from the current rate.
What to Expect from UCA Communications
Customers on the RoLR will receive notifications from the Utilities Consumer Advocate (UCA) at least once EVERY 90 days via email or traditional mail. The Alberta government is determined to ensure that customers are CONSTANTLY REMINDED they are on the RoLR which offers the worst rate in Alberta. These persistent notifications serve as a strong nudge for customers to explore competitive electricity plans, emphasizing the government's stance that staying on the RoLR is NOT the preferred long-term choice. While no action is required upon receiving these notices, it is evident that the government wants Albertans to actively seek alternatives and move away from the RoLR where possible.
Who is affected by this change?
The RoLR applies to all residential, small business, and farm customers previously on the RRO. New electricity customers who do not select a competitive plan will automatically be placed on the RoLR.
How can I check if I am on the RoLR?
Your electricity bill will indicate “Rate of Last Resort” or “RoLR.”
What is the current RoLR rate?
To find the RoLR rate effective January 1, 2025 – December 31, 2026, visit the Alberta Utility Commission website or speak with an experienced energy consultant.
Does the RoLR apply to both electricity and natural gas?
No, the RoLR only applies to electricity. Customers on the Default Rate Tariff for natural gas will not be affected.
Can I stop receiving RoLR notifications?
No. By regulation, customers on the RoLR must receive notifications at least once EVERY 90 days.
How can I switch electricity providers?
The best way to explore your options is to speak with an experienced energy consultant. They can answer any questions you have and help you seamlessly transfer your services so you can experience more value.
How does the UCA have my contact information?
Under the UCA Regulation, retailers share customer information with the UCA.
Do I have to leave the RoLR?
No, switching is optional. However, the RoLR is the worst possible option for a consumer and you should do everything in your power to leave.
I received a notification but don’t believe I’m on the RoLR. What should I do?
An experienced energy consultant will let you know who your energy retailer is and what your options are.
How many people are currently on the RoLR?
Numbers fluctuate monthly, but approximately 26% of residential customers, 29% of commercial customers, and 40% of farm customers purchase electricity through the RoLR.
Are there fees for leaving the RoLR?
No, customers can switch from the RoLR to a competitive plan at any time without penalties.
Who is THE TEAM?
We are a team of energy consultants who launched into the retail energy industry in 2016. We are not call centre employees who will treat you like another number. THE TEAM is a group of local entrepreneurs in your area, supporting their families, by helping people find more value. If our customers have questions or concerns, they can call or message us any time. We believe in transparency and building long term relationships with our customers. With with a vigilant eye on long-term commodity pricing forecasts, we will help you explore your energy options with a focus on long term value.
THE TEAM
Alberta's MOST Experienced Energy Consultants
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