The great thing about Alberta’s electricity market is that you have choices. Lots of choices. The Regulated Rate Option (RRO) is one such choice, but is it the best? As a regulated rate, that’s often where the government steps in and implements measures such as the RRO Deferral Cap. In the short term, a cap like this can be helpful. In the long term, it’s a hamster wheel.
Let’s be clear: The 13.5 cents per kWh “cap” the Alberta Government put in place for consumers on the RRO is NOT a cap, it’s a deferral. The published RRO prices jumped to over 30 cents per kWh this winter. Starting in April, RRO customers will still have to pay the deferred $201 million back to ENMAX, EPCOR, and Direct Energy over the next 21 months. The amount will be added as a premium rider to future RRO invoices. Expect to see an additional 2.5 cents per kWh added to RRO rates. Staying on the RRO could cost you an additional (approximately) $200-300 over the next 21 months.
But did you know that if you get off the RRO, you can avoid paying the deferred amount? You’ll save a couple of hundred dollars and pay less for your electricity every month.
Approximately 37% of consumers in Alberta are still enrolled under the Regulated Rate Option. It’s time to take control and start saving money!
Don’t know where to start? Give us a call at Camrose Energy, (780)781-4115, and we would love to answer any of your questions that you may be having.
For those who have the opportunity to opt out of the $201 million deferral debt, get off of the RRO. Contact Alberta’s Utilities Consumers Advocate (UCA) for a list of all competitive retailers in Alberta. https://ucahelps.alberta.ca/
Unfortunately, some consumers do not have the option to sign up with a competitive retailer due to barriers such as poor credit ratings or lack of funds for deposits are sadly going to get stuck on the RRO hamster wheel. We’ve presented a solution to government officials that we think would significantly aid vulnerable Albertans – we hope they’re listening. Click here for a copy.
