What is RRO - Understanding the EnergyTariffs Available in the Market.

The RRO (Regulated Rates Option) is the default rate for customers who do not sign a contract with any competitive energy provider in Alberta, and it is set by the Alberta Utility Commission (AUC), an independent body responsible for ensuring that RRO customers are reasonably charged for their energy and that energy suppliers are also fairly compensated. About 31% of energy customers in the province are currently on this rate.

The AUC reviews and adjusts the RRO rates on a monthly basis, which means that RRO customers may experience fluctuations in their rates from month to month. The RRO is only available to small businesses and residential customers who consume less than 250,000 kWh of energy or 2,500 GJ of natural gas per year. Some RRO customers may not be aware that they are on this tariff.

On the other hand, Competitive Energy Rates are options available to energy customers in Alberta who choose to receive their energy supply from private, government-approved energy retailers rather than the default Regulated Rate Option (RRO). These retailers offer various tariffs, including Fixed and Variable Rates, which allow customers to choose the rate that best meets their needs.

When customers choose fixed rates, they are guaranteed the same energy rate for the duration of their contracts. It is important to note that these rates only apply to energy usage and do not include other fees or charges. Customers who choose a competitive energy rates have the opportunity to shop around and compare different tariffs and rates to find the best deal.