Alberta is one of the few provinces in Canada with a deregulated electricity market. That means you get to choose your energy retailer — and whether you want a fixed or variable rate. But what does that actually mean for your monthly bill? And which option is better?
This guide breaks down both options so you can make an informed decision.
How Alberta's Electricity Market Works
In Alberta, your electricity bill has two main parts:
- Energy charges — the cost of the electricity itself. This is the part you can control by choosing a retailer and rate plan.
- Delivery charges — regulated fees from your local utility (ATCO, EPCOR, FortisAlberta, etc.) for delivering electricity through the grid. These are the same regardless of which retailer you choose.
When people talk about "fixed vs variable rates," they're talking about the energy charge — the supply component that your chosen retailer sets.
What Is a Fixed Electricity Rate?
A fixed rate locks in your per-kilowatt-hour (kWh) energy price for a set period — typically 1, 2, 3, or 5 years. No matter what happens in the wholesale electricity market, your rate stays the same.
Bright Fire Example
Our 1-year fixed rate is 9.29¢/kWh. If the wholesale market jumps to 15¢/kWh in January, you still pay 9.29¢. If it drops to 5¢/kWh in spring, you still pay 9.29¢.
When fixed rates make sense:
- You want budget certainty — same energy cost every month (usage aside)
- You're risk-averse — you'd rather not gamble on wholesale prices
- Wholesale prices are trending up — locking in now protects you from future increases
- You're on a fixed income — predictability matters more than potential savings
What Is a Variable Electricity Rate?
A variable rate moves with the Alberta wholesale electricity market. Your per-kWh price changes based on real-time market conditions — when wholesale prices are low, you pay less; when they're high, you pay more.
Bright Fire Example
Our variable rate is the Alberta wholesale price + 0.85¢/kWh. That's it — a transparent markup with no hidden adjustments. Historically, our variable-rate customers have paid below the provincial Regulated Rate Option (RRO).
When variable rates make sense:
- You can handle monthly fluctuations — some months higher, some lower
- Wholesale prices are currently low or stable — you benefit directly
- You want flexibility — no long-term rate commitment
- You're willing to monitor the market — and can switch to fixed if prices climb
Side-by-Side Comparison
| Feature | Fixed Rate | Variable Rate |
|---|---|---|
| Price predictability | Same price every month | Fluctuates monthly |
| Risk level | Low — protected from spikes | Medium — exposed to market |
| Savings potential | Moderate | Higher (in low-price markets) |
| Best for | Budget certainty | Flexibility, market watchers |
| Cancellation fee (electricity) | $0 at Bright Fire | $0 at Bright Fire |
What About the Regulated Rate Option (RRO)?
If you don't choose a retailer, you're automatically placed on the Regulated Rate Option — a government-set rate that changes monthly. The RRO is not a "discount" rate; it's simply the default. Most Albertans can save by choosing either a competitive fixed or variable rate from a retailer like Bright Fire Energy.
Our Recommendation
There's no universally "better" choice — it depends on your priorities:
- Choose fixed if you value predictability and want protection from price spikes
- Choose variable if you're comfortable with fluctuations and want to pay market rates
- Start with variable, switch to fixed later — with Bright Fire, there's no cancellation fee on electricity, so you can switch strategies as the market changes
The Bright Fire Advantage
With Bright Fire Energy, there are no cancellation fees on electricity — on any plan, any term. That means you can start with a variable rate, switch to fixed if the market shifts, or cancel entirely. No penalty, no pressure. (For natural gas: variable has no exit fee; fixed-rate contracts carry a $250 early exit fee.)
Learn more about our no-cancellation-fee policy →Bright Fire Energy Plans
View our current fixed and variable rates on our Rates page, or enroll in about 4 minutes: