Affordability and Utilities Minister Nathan Neudorf. (Chris Schwarz/Government of Alberta)

By rdnewsNOW Staff

CONTRACT OR RATE OF LAST RESORT

Alberta launching advertising campaign on consumer electricity options

Feb 5, 2025 | 5:03 PM

The Government of Alberta is launching an advertising campaign encouraging Albertans to explore their electricity options beyond the Rate of Last Resort.

The Rate of Last Resort was announced in September 2024 and went into effect on Jan. 1, 2025, set at a rate of 12 cents per kilowatt hour until 2027. The rate can only change by a maximum of 10 per cent between two-year terms.

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Read more

• Alberta government introducing the “Rate of Last Resort”
• Alberta’s new electricity ‘rate of last resort’ comes into effort, no Medicine Hat application

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The rate automatically applies to consumers that don’t have contracts with one of Alberta’s 50 competitive providers.

The Government of Alberta is now launching advertisements designed to ensure that electricity users know they have choices outside the Rate of Last Resort, and says competitive contracts could save them hundreds of dollars.

“Albertans shouldn’t pay more on their power bill than they have to. Our government is taking action to ensure they have the tools they need to make informed decisions about their electricity so more of their hard-earned dollars can be used where they’re needed most for them and their families,” commented Nathan Neudorf, Minister of Affordability and Utilities.

Provincial officials say last year, tens of thousands of households made the switch from the Rate of Last Resort to a competitive contract.

“Alberta’s competitive electricity market gives consumers choice, and for most Albertans, competitive retail rates are a better choice than the Rate of Last Resort,” said Chantelle de Jonge, Parliamentary Secretary, Affordability and Utilities. “I encourage everyone to learn about their electricity options and contact the Utilities Consumer Advocate if you need help understanding your utilities.”

The campaign builds on existing awareness efforts to lower utility bills and protect Albertans from price spikes.

Every 90 days, the Utilities Consumer Advocate will contact all ratepayers on the Rate of Last Resort, confirm whether they’d like to remain on the default rate and encourage them to explore their options.

Nagwan Al-Guneid, Alberta NDP Shadow Minister for Energy and Minerals, issued a statement in response to this announcement.

“The UCP government developed new legislation, created this Rate of Last Resort (RoLR), and went through a bureaucratic process to set the RoLR at 12 cents/kWh, and now they’re spending taxpayer dollars telling Albertans it’s too expensive?” Al-Guneid asked. “Albertans can find retail rates as low as seven cents/kWh. How is it possible that the government could not develop a rate remotely close to the retail rate?”

She added that while helping Albertans understand their options is important, an advertising campaign doesn’t help the more complex affordability factors impacting newcomers, seniors, and rural and vulnerable Albertans.

“Moreover, the UCP government’s ongoing restructuring of the electricity market has created unprecedented uncertainty, making the Alberta electricity market impossible to invest in,” she said.

She finished with a call to the government to make the rate as affordable as retail options to prevent confusion.