Australia : October 22, 2008

In Alberta’s deregulated energy market, consumers with annual electricity usage of less than 250,000 kWh have two options for purchasing their electricity supply. The first option allows them to be billed under the Regulated Rate Option (RRO) where the rate changes each month by order of the Alberta Utilities Commission. The second option allows them to contract with an electricity retailer wherein they would negotiate a price for electricity supply.

From 2002 to 2006, the RRO was determined by long-term prices of electricity. However, in 2010, the Province will introduce a new RRO pricing plan that will be linked to electricity prices in the following month. During a transitional period, short and long term market prices will be used to set the RRO. Presently, the blended RRO is based on 40 percent long term prices and 60 percent short term prices. In 2002, the RRO ranged between 5 to 6 cents per kWh with the current RRO ranging between 9 to 12 cents per kWh.

Contrary to the RRO, electricity retailers in Alberta offer a variety of pricing products in addition to fixed-price contracts. Furthermore, retailers offer a range of “green” energy options for more environmentally conscious consumers.

Clearly, Albertans have a wide range of choices besides the standard RRO for their electricity needs. Finding the right electricity option suitable for their needs and consumption still remains a challenge, but the rewards are there for those willing to “Make the Change”.