Regulated Rate Providers
What is a regulated rate provider? Is the regulated rate always your cheapest option for your power and gas supply? Find out in our guide
What is a Regulated Rate Provider?
A regulated rate provider is an energy retailer that has the right to sell electricity or natural gas at rates that are approved by the Alberta Utilities Commission (AUC). Regulated rate providers are the default suppliers for customers who do not choose to purchase their energy supply from a competitive energy retailer. Regulated rate providers are bound to follow certain energy procurement procedures that have been pre-approved by the AUC. Their terms and conditions are also regulated and approved by the AUC.
Who Are the Regulated Rate Providers in Alberta?
The regulated rate providers for power in Alberta are:
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The City of Lethbridge provides regulated electricity rates for residents of Lethbridge. The City of Lethbridge Electric Utility is also the wires services provider for the City, and provides fibre optic service for public oriented organizations that operate within city boundaries | 403-320-3111 |
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Direct Energy Regulated Services is the regulated rate provider for customers within the ATCO Electric service territory | 1-866-420-3174 |
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ENMAX provides regulated rates for the cities of Calgary, Cardston, Crowsnest Pass, Fort Macleod, Ponoka, and Red Deer | 310-2010 or toll-free 1-877-571-7111 |
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EPCOR is the regulated rate provider for Edmonton and the FortisAlberta service territories | 310-4300, or toll-free at 1-800-667-2345 |
The regulated rate providers for natural gas in Alberta are:
| Retailer | Description & Service Area | Customer Service Phone Number |
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Direct Energy Regulated Services sells regulated rate gas for customers within the ATCO Gas service territory. The regulated rate for gas from DERS is called the Gas Cost Flow-Through Rate | 1-866-420-3174 |
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AltaGas Utilities provides the regulated natural gas rates within its own service territory. The regulated rate for gas from AltaGas Utilities is known as the Gas Cost Recovery Rate | 1-866-222-2067 |
The City of Medicine Hat along with Alberta residents within rural electrification associations or natural gas co-ops purchase their energy at rates that are not regulated by the AUC and do not have a choice of energy retailer.
How is the Regulated Rate for Electricity Calculated?
Want more detailed information? Check out our dedicated article on the regulated rate option
The regulated rate option is approved by the AUC and changes every month. Regulated rate option providers procure electricity supply according to the procedure set out in an Electricity Price Setting Plan (EPSP) that the AUC has approved. Prices are based on estimates of future prices (five to 45 days before the consumption month) and consumption volumes, but also include a margin for risk (known as an "adder") in order to recover any differences between actual and estimated costs. The EPSP must be submitted to the AUC five days before the start of the next month. Prices are published on the first day of each month.
How is the Regulated Rate for Gas Calculated?
As is the case for regulated rate option electricity, regulated natural gas rate providers must follow a procurement procedure that has been approved by the AUC. Prices are based on estimates of future costs and volume requirements, but also take into account historical weather data (as natural gas prices are closely tied to weather patterns). Future costs are based on the price of the spot market for natural gas in Alberta, which is called the NGX. Any differences between estimated and future costs of the present month are added to a "deferral account", the accumulated amount of which is added into the forecasted costs for the next month.
Find a more detailed explanation of regulated natural gas rates
Is the Regulated Rate Always Cheaper?
Alberta regulations requires the regulated prices to be reasonable and market-based. However, this does not necessarily mean that the regulated rate is always the cheapest option for your energy supply. Regulated rate providers are allowed a "reasonable" rate of return that has been approved by the AUC; competitive energy marketers operate with different profit margins, which may be lower. Smaller retailers may also be able to operate with fewer overhead costs, and be able to offer a reduced administration fee. As they are not bound by a fixed procurement procedure, they may be able to purchase energy at different rates than regulated rate providers.
Interested in finding out the lowest price for your energy? Check out our comparisons of administration fees charged by all energy retailers in Alberta. Or, check out the rates offered by different suppliers in Alberta
Why Choose a Regulated Rate Provider?
Most Albertans have chosen the regulated rate provider by default; Albertan energy consumers who do not choose to purchase energy from a competitive energy retailer automatically purchase energy from their local regulated rate provider. The main advantage of choosing to purchase your energy from a regulated rate provider is that while you may not always be paying the cheapest rate on the market, you know that it has been approved by an Alberta regulatory body as "reasonable". Knowing that both rates as well as terms and conditions are approved by the AUC might also provide some customers with greater peace of mind. Regulated rate customers may also be eligible to call upon the AUC as a mediator in the case of a dispute. However, while competitive energy retailers' rates and terms and conditions are not regulated by the AUC, they must be licenced by Services Alberta and are required to follow certain regulations regarding energy marketing.
Choosing an energy contract from a competitive energy retailer requires a little bit more work as you shop around and compare offers, but it is not as complicated as you might think! If you are moving, the procedure for signing up with a competitive energy retailer is no different from signing up with a regulated rate provider. If you are already signed up with your regulated rate provider, switching energy suppliers is not difficult, and as your local gas or electric utility remains responsible for delivery, your supply won't be interrupted.