March 31, 2023
The great thing about Alberta’s electricity market is that you have choices. Lots of choices. The Regulated Rate Option (RRO) is one such choice, but is it the best? As a regulated rate, that’s often where the government steps in and implements measures such as the RRO Deferral Cap. In the short term, a cap like this can be helpful. In the long term, it’s a hamster wheel.
Let’s be clear: The 13.5 cents per kWh “cap” the Alberta Government put in place for consumers on the RRO is NOT a cap, it’s a deferral. This winter, the published RRO prices jumped to over 30 cents per kWh. Starting in April, RRO customers will still have to pay the deferred $201 million back to ENMAX, EPCOR, and Direct Energy over the next 21 months, and the amount will be added as a premium rider to future RRO invoices. Expect to see an additional 2.5 cents per kWh added to RRO rates. Staying on the RRO could cost you an additional (approximately) $200-300 over the next 21 months.
But did you know that if you get off the RRO, you can avoid paying the deferred amount? You’ll save a couple hundred dollars plus you’ll pay less for your electricity every month.
Approximately 37% of consumers in Alberta are still enrolled under the Regulated Rate Option. It’s time to take control and start saving money!
Don’t know where to start? Try NewGen Energy. We offer lower rates than the RRO’s and with a term price you won’t have any surprises again..
For those who have the opportunity to opt out of the $201 million deferral debt, just get off of the RRO.
Unfortunately, some consumers do not have the option to sign up with a competitive retailer due to barriers such as poor credit ratings or lack of funds for deposits are sadly going to get stuck on the RRO hamster wheel. We’ve presented a solution to government officials that we think would significantly aid vulnerable Albertans - we hope they’re listening. Click here for a copy.