If you've never actively chosen an electricity plan in Alberta, you're very likely on the Rate of Last Resort (RoLR) — sometimes also called the Regulated Rate Option (RRO). It's the default rate every Alberta electricity consumer is automatically billed at unless they sign a contract with a competitive retailer. It isn't a bad rate, and it isn't a trap — but it's worth understanding what it is before deciding whether to stay on it.

Where the RoLR comes from

Alberta deregulated its electricity market years ago, which means you get to choose your retailer — but nobody is forced to choose. If you never pick a competitive plan (or if a fixed-term contract ends and you don't renew), you default to the RoLR, set by a Regulated Rate Provider in your service territory (ENMAX in Calgary, EPCOR in Edmonton, and others elsewhere) under rules set by the Alberta Utilities Commission (AUC).

The thing people don't expect: it moves

Unlike a fixed-rate competitive contract, the RoLR is not locked in. It's tied to wholesale market pricing and is set on a regular cycle, so it can rise and fall from one period to the next — sometimes by a lot, especially in winter months when Alberta's power market gets volatile. If your bill has felt unpredictable, this is usually why.

RoLR vs. a competitive fixed-rate plan

• RoLR: no contract, no cancellation fee, rate can change with the market — simple, but exposed to price swings.
• Competitive fixed plan: you lock a rate for a term (often 1–5 years), trading flexibility for predictability — worth it if the locked rate is meaningfully below what the RoLR is likely to average over that term.
• Competitive variable plan: still floats with the market like the RoLR, but from a different retailer and fee structure — only worth it if the math (including any transaction fees) actually beats the RoLR.

There's no universally "right" answer — it depends on your appetite for predictability and what rates are actually available in your territory right now, not on general advice. The only way to know if switching makes sense for you is to compare your *current* rate against *current* competitive offers.