The Alberta government has changed the name of the Regulated Rate Option (RRO) to the Rate of Last Resort (ROLR). By changing the RRO to ROLR, the Alberta government wants people to understand this electricity rate should only be signed up for when no other options are available. “Because everyone in our province could use some clarity and certainty about costs right now,” said Alberta Premier Danielle Smith at a Thursday press conference. “A name change of course is one thing, but a name change in and of itself doesn’t get us where we need to be.” Smith said the ROLR will be set by each electricity provider for two years to allow customers to have fewer price spikes and more certainty about future costs. For example, she said the average price of the RRO was 22 cents per kilowatt hour due to spikes in electricity. If the Alberta government had this policy in place before the announcement, the Market Surveillance Administrator estimated the average price would have been 11 cents per kilowatt hour. When electricity costs are considered in monthly bills, that means the policy would have cut them in half. The Alberta Utilities Commission estimated the average household uses 600 kilowatt hours of electricity per month. When these numbers are combined, that means average electricity bills would be $66 per month instead of $132 per month.That is about $792 in savings per year. Smith said anyone who signs onto the ROLR will be able to choose a different competitive rate plan at any time. The Alberta government will require power providers to inform people what rate they are on and to advise them about their ability to leave at any time. She said it “can’t simply allow confusion about electricity billing to cause Albertans financial hardship.” At the moment, she pointed out Alberta is a few months away removed extreme cold and hot temperatures. These temperatures create spikes in demand, which result in spikes in electricity rates and consumer bills. Smith concluded by saying these spikes hurt vulnerable people the most. But that is going to change as the Alberta government tries to make power more affordable to Albertans. Alberta Affordability and Utilities Minister Nathan Neudorf said making life more affordable for all Albertans is a top priority. “We have taken an all-government approach and addressing electricity prices has been my focus,” said Neudorf. “By lowering the cost of utilities, we are directly making a difference for every single Albertan.” While the Canadian government makes power bills more expensive with its carbon tax, Neudorf said the Alberta government “is doing everything we possibly can to help Albertans save their hard-earned dollars.” He acknowledged utility bills can make or break a budget when every dollar counts. Neudorf followed up by saying a working group came forward with different names. “And this one we think will grab the attention of consumers the most and help inform them of the true nature of the rate as the premier stated,” he said. “Information and informing consumers is a very high priority within the suite of changes.” Direct Energy Regulated Services (DERS) said on March 1 the RRO was poised to drop 25% because of the first in a series of major new gas-fired power generation additions would be coming online. READ MORE: Alberta’s electricity rates fall 25% as new gas-fired generation comes onlineDERS announced the RRO will fall to 13.38 cents per kilowatt hour for residential consumers and 13.2 cents per kilowatt hour for commercial users.That was down from about 15.7 cents per kilowatt hour in February. DERS said a typical residential customer consuming about 600 kilowatt hours per month would save about $20.15 on their bills.
The Alberta government has changed the name of the Regulated Rate Option (RRO) to the Rate of Last Resort (ROLR). By changing the RRO to ROLR, the Alberta government wants people to understand this electricity rate should only be signed up for when no other options are available. “Because everyone in our province could use some clarity and certainty about costs right now,” said Alberta Premier Danielle Smith at a Thursday press conference. “A name change of course is one thing, but a name change in and of itself doesn’t get us where we need to be.” Smith said the ROLR will be set by each electricity provider for two years to allow customers to have fewer price spikes and more certainty about future costs. For example, she said the average price of the RRO was 22 cents per kilowatt hour due to spikes in electricity. If the Alberta government had this policy in place before the announcement, the Market Surveillance Administrator estimated the average price would have been 11 cents per kilowatt hour. When electricity costs are considered in monthly bills, that means the policy would have cut them in half. The Alberta Utilities Commission estimated the average household uses 600 kilowatt hours of electricity per month. When these numbers are combined, that means average electricity bills would be $66 per month instead of $132 per month.That is about $792 in savings per year. Smith said anyone who signs onto the ROLR will be able to choose a different competitive rate plan at any time. The Alberta government will require power providers to inform people what rate they are on and to advise them about their ability to leave at any time. She said it “can’t simply allow confusion about electricity billing to cause Albertans financial hardship.” At the moment, she pointed out Alberta is a few months away removed extreme cold and hot temperatures. These temperatures create spikes in demand, which result in spikes in electricity rates and consumer bills. Smith concluded by saying these spikes hurt vulnerable people the most. But that is going to change as the Alberta government tries to make power more affordable to Albertans. Alberta Affordability and Utilities Minister Nathan Neudorf said making life more affordable for all Albertans is a top priority. “We have taken an all-government approach and addressing electricity prices has been my focus,” said Neudorf. “By lowering the cost of utilities, we are directly making a difference for every single Albertan.” While the Canadian government makes power bills more expensive with its carbon tax, Neudorf said the Alberta government “is doing everything we possibly can to help Albertans save their hard-earned dollars.” He acknowledged utility bills can make or break a budget when every dollar counts. Neudorf followed up by saying a working group came forward with different names. “And this one we think will grab the attention of consumers the most and help inform them of the true nature of the rate as the premier stated,” he said. “Information and informing consumers is a very high priority within the suite of changes.” Direct Energy Regulated Services (DERS) said on March 1 the RRO was poised to drop 25% because of the first in a series of major new gas-fired power generation additions would be coming online. READ MORE: Alberta’s electricity rates fall 25% as new gas-fired generation comes onlineDERS announced the RRO will fall to 13.38 cents per kilowatt hour for residential consumers and 13.2 cents per kilowatt hour for commercial users.That was down from about 15.7 cents per kilowatt hour in February. DERS said a typical residential customer consuming about 600 kilowatt hours per month would save about $20.15 on their bills.
