It's the default electricity rate millions of Albertans pay without realizing it — and in 2025 it changed names. Here's what the RRO (now the Rate of Last Resort) actually is, what it costs, and how to pay less.
The Regulated Rate Option (RRO) was Alberta's default electricity rate — the price you pay if you've never chosen an energy retailer. On January 1, 2025, the RRO was replaced by the Rate of Last Resort (RoLR). Same job, new rules: instead of bouncing around every month, the RoLR is now a fixed rate set for two years by the Alberta Utilities Commission.
For 2025–2026 that default rate is about 12.01¢/kWh. It's a safety net — it keeps your lights on — but it was never built to be the cheapest. Bright Fire's fixed rate is 9.29¢/kWh, roughly 2.7¢/kWh below the default, with no cancellation fees on electricity.
Alberta is the only province in Canada with a fully deregulated energy market — meaning you get to choose who supplies your electricity and natural gas. If you never make that choice, you're automatically placed on a government-regulated default rate so your power is never interrupted. For years, that default was called the Regulated Rate Option (RRO).
The catch: the old RRO was a floating rate that changed every single month based on the wholesale market. Some months it spiked hard, and Albertans on the RRO had no way to predict their bill.
To fix that, the Government of Alberta replaced the RRO with the Rate of Last Resort (RoLR) on January 1, 2025. If you were on the old RRO, you were moved onto the RoLR automatically — you didn't have to do anything.
per kWh — the Rate of Last Resort for 2025–2026
fixed term (Jan 1, 2025 – Dec 31, 2026), set by the Alberta Utilities Commission
Bright Fire's fixed rate — about 2.7¢/kWh below the default
The exact RoLR figure varies slightly by regulated provider (EPCOR, ENMAX, or Direct Energy Regulated Services) and includes a 0.1¢/kWh awareness surcharge that goes to Alberta's Utilities Consumer Advocate.
If you've never signed up with a competitive retailer, you're almost certainly on the Rate of Last Resort right now. Two quick ways to check:
The RoLR is available to residential customers, farms, and small businesses using under 250,000 kWh per year. Note: the Rate of Last Resort applies to electricity only. Natural gas has its own separate regulated default rate that still changes month to month.
A simple look at the electricity energy charge — the part of your bill you actually get to shop for.
| Plan | Electricity rate | What it does |
|---|---|---|
| Rate of Last Resort (the default / former RRO) |
~12.01¢/kWh | Fixed by the AUC through Dec 2026. A safety net — not built to be cheap. |
| Bright Fire Fixed | 9.29¢/kWh | Locked in for 1 or 2 years. About 2.7¢/kWh below the default. No cancellation fees. |
| Bright Fire Variable | ~2.5¢/kWh pool price + 0.85¢ |
Tracks the Alberta wholesale market plus a low 0.85¢/kWh markup. Worked out to about 2.5¢/kWh on the 30-day average Alberta pool price as of June 2026 (and roughly 5¢/kWh averaged over the past year). Often well below the default, but it rises and falls with the market. |
Illustrative example: at 9.29¢ vs. ~12.01¢, a typical home using ~600 kWh/month saves roughly $16/month (about $195/year) on the energy-charge line. Your savings depend on your usage. Delivery, distribution, and administration charges are set by your local utility and are the same no matter which retailer you choose. Variable rates follow the wholesale market and can rise or fall — the ~2.5¢/kWh shown is the 30-day average Alberta pool price (AESO) as of June 28, 2026 (≈1.7¢/kWh) plus the 0.85¢/kWh markup, and it changes daily.
Getting off the Rate of Last Resort is the single easiest way to lower your power bill. Switching to a competitive retailer takes about 4 minutes, and here's the part most people don't realize: your power never goes out and nothing about your service changes. The same local utility delivers your electricity through the same wires — only the company that prices and bills the energy changes.
When you switch to Bright Fire Energy, you get:
9.29¢/kWh fixed, or a variable rate at the Alberta pool price + 0.85¢/kWh.
On electricity plans. Leave anytime — we'd rather earn your stay.
An Alberta company that answers the phone — not a national call centre.
Our SMART Solar program pays 35¢/kWh for excess solar production exported to the grid.
And because Bright Fire donates 10% of profits to Alberta communities, switching your power also gives back close to home.
They're the same default rate under two names. The Regulated Rate Option (RRO) changed every month; on January 1, 2025 it became the Rate of Last Resort (RoLR), which is now fixed for a two-year period. The job is identical — it's the fallback rate if you haven't chosen a retailer.
The Alberta Utilities Commission (AUC) approves it. The current term runs January 1, 2025 to December 31, 2026, and a new rate is set for 2027–2028.
No. It's a safety net designed to keep everyone connected — not to be the lowest price. A competitive retailer like Bright Fire typically beats it; our fixed rate of 9.29¢/kWh sits roughly 2.7¢/kWh below the current default.
Never. Your local utility (ATCO, EPCOR, FortisAlberta, ENMAX) keeps delivering electricity through the same wires. Only the company that bills you for the energy changes.
About 4 minutes online. We handle the rest with your utility, and the switch usually takes effect on your next meter-reading date.
Takes about 4 minutes. No cancellation fees on electricity. Your power never goes out.
Enroll NowWant to compare first? See our current rates or call 780-779-7188.