How Electricity Deregulation Works in Alberta

If you live in Alberta, you may have heard the term “deregulated electricity market” — but what does that actually mean for you as a homeowner, business owner, or farmer? Understanding how electricity deregulation works can help you make smarter decisions about your energy provider, your pricing plan, and your monthly bills.

In this guide, we’ll break it down in simple terms, so you know exactly how Alberta’s electricity market works and how it benefits you.

 

What Is Electricity Deregulation?

Electricity deregulation means that customers in Alberta can choose who supplies their electricity. Instead of being locked into one government-run utility, you can shop around and select from multiple competitive energy providers.

Before deregulation, electricity was supplied by a single regulated utility in each area. Today, Alberta operates in an open energy market, giving consumers more freedom, flexibility, and control over their energy costs.

 

How Alberta’s Deregulated Market Works

In Alberta, electricity service is divided into three main parts:

1. Generation

Power is produced at power plants across the province using various energy sources such as natural gas, wind, and hydro.

2. Transmission and Distribution

High-voltage transmission lines carry electricity across Alberta, while local distribution companies deliver it directly to your home or business. These companies maintain the infrastructure and respond to outages.

Important to note: You cannot choose your transmission or distribution provider. These are assigned based on where you live.

3. Retail Energy Providers

This is where deregulation comes in.

Retailers like Burst Energy purchase electricity from the market and sell it to customers. As a consumer, you get to choose your retail provider and your pricing plan.

 

Regulated vs Competitive Electricity Rates

In Alberta, you can choose between two main pricing options:

Regulated Rate Option (RRO)

The RRO is set monthly based on market prices. It can rise or fall depending on supply and demand. This option may appeal to customers who are comfortable with price changes and short-term fluctuations.

Competitive Retail Plans

Competitive providers offer fixed-rate or variable-rate plans.

• Fixed-rate plans lock in your price for a set term, protecting you from market spikes.
• Variable-rate plans follow market trends but may offer flexibility.

Many customers prefer competitive plans because they provide more control and long-term stability.

 

How Deregulation Benefits Alberta Consumers

Deregulation was designed to give Albertans more choice and better service. Some of the key benefits include:

More Competition: Energy providers compete for your business, which helps keep pricing competitive.

Greater Price Transparency: You can compare plans, rates, and contract terms before signing up.

Flexible Plan Options: Customers can choose plans that match their lifestyle, budget, and risk tolerance.

Improved Customer Service: Local providers like Burst Energy focus on personalized support and clear communication.

 

Does Deregulation Affect Reliability?

No. Your electricity reliability does not change when you choose a competitive provider.

Transmission and distribution companies still manage the power grid and respond to outages. Your provider simply handles billing, rates, and customer service.

So, whether you’re on a regulated rate or a competitive plan, your electricity remains just as reliable.

 

How to Choose the Right Electricity Plan

When selecting a provider and plan, consider:

• Your average monthly usage
• Your budget and financial goals
• Whether you prefer stable or flexible pricing
• How long you plan to stay in your home or business location

A trusted local electricity provider can help you review your options and choose the best fit.

 

Why More Albertans Choose Burst Energy

As an Alberta-owned and operated company, Burst Energy understands the local energy market and the unique needs of our customers.

We offer:

• Transparent pricing
• Flexible electricity plans
• Alberta-based customer support
• Simple sign-up and switching

Our goal is to make deregulation work for you — not against you.

 

Take Control of Your Electricity Today

Electricity deregulation gives you the power to choose who supplies your energy and how much you pay. By understanding how the system works, you can take advantage of competitive rates and better service.

If you’re ready to explore your options, contact Burst Energy today to learn more about our electricity plans and discover how easy it is to switch.