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By Christian Oldale

Provincial Politics

Alberta introducing new electricity regulations

Apr 18, 2024 | 1:35 PM

The provincial government is introducing new regulations to make electricity more affordable.

Under the new regulations set to be introduced this spring, default electricity rates will be stabilized by being set for each provider every two years.

The province says this will significantly reduce spikes in prices for Albertans unable to sign a competitive contract, including rural Albertans who may not have other options available, and those who have poor credit or other financial difficulties such as seniors and other vulnerable populations.

Nathan Neudorf, Minister of Affordability and Utilities said, “Utility bills can make or break a tight budget where every penny counts, which is why we’re protecting those with limited options from sudden spikes in electricity prices. This will also make life more affordable for all Albertans as it puts downward pressure the price of utilities.”

The Alberta government intends to introduce legislation this spring to rename the default electricity rate to the Rate of Last Resort. It is currently named the Regulated Rate Option (RRO), which the province says misleads consumers into a false sense of protection.

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They add that by changing the name to the Rate of Last Resort, consumers will be able to better understand the rate they are paying and encourage them to find the best option for them.

Alberta NDP Leader Rachel Notley made the following statement in response to today’s announcement on electricity rates in Alberta:

“Today’s announcement was no more than a plan to make a plan. Alberta’s most vulnerable low-income families won’t see immediate relief.

“Danielle Smith and the UCP made a decision to abandon families when they eliminated the cap on electricity rates. This caused utility prices to explode. Now, Alberta has the highest utility rates in the country.

“There was nothing in today’s announcement to protect Albertans this summer from the record-breaking rate spikes like we saw last year.

“The UCP should not have taken the cap off before they had a plan to ensure utility prices wouldn’t spike.

“Once again, Danielle Smith and the UCP put big interests over the interests of regular families.”

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