How to choose the most advantageous tariff for gas and electricity?

Choosing the most advantageous gas and electricity tariff in Calgary can seem like a daunting task due to the large number of options available and the variety of contract terms. However, by understanding the basic principles of Alberta's deregulated energy market and using the right comparison method, you can save significantly on your utility bills. This detailed guide will help you make the most informed choice.

Understanding Alberta's energy market structure

Alberta has a deregulated energy market, which means consumers have the right to choose their electricity and natural gas provider. This creates competition among providers, which in theory should lead to better prices and services for consumers. However, it is this variety of options that makes choosing difficult.

On January 1, 2025, Alberta introduced a new Rate of Last Resort (RoLR) system, replacing the previous Regulated Rate Option (RRO). These rates are a kind of “insurance” for consumers who have not chosen a competitive supplier and are set for two years.

Current regulated rates (RoLR)

For Calgary, the rate is 12.06 cents/kWh, provided by ENMAX Energy. This rate will remain unchanged until December 31, 2026, and excludes delivery charges and administrative fees.

Types of rate plans

Fixed rates

Fixed rates guarantee a constant price per unit of energy for a specified period, typically one to five years.

Advantages:

  • Budget predictability — stable costs make it easier to plan your family budget. You know exactly how much you will pay per kWh or GJ for the entire duration of the contract.
  • Protection against price spikes — when market prices rise, you pay a fixed lower rate.
  • Combined services — some suppliers offer discounts when you order electricity and gas together.
  • Flexibility to change — most fixed contracts in Alberta can be changed without penalty if market prices fall.

Variable (floating) rates

Variable rates fluctuate according to market conditions, which can lead to monthly changes in your bill.

  • According to experts at EnergyRates.ca, the lowest rates are often available on variable contracts, but they require a willingness to take risks and constant monitoring.
  • May be more advantageous during periods of low market prices, but carry the risk of significant increases. Example: In 2023, the RRO (predecessor to the RoLR) peaked at 31.486 cents/kWh in August.

Wholesale rates

Some suppliers offer wholesale rates: customers pay the same price as the supplier, plus a small administrative fee. This often provides competitive prices but is suitable for consumers who are prepared for market fluctuations.

How to compare rates

Step 1: Determine your consumption Before comparing rates, it is important to know your average energy consumption.

Average figures for Alberta:

  • Electricity: the average home consumes 600 kWh per month (ranging from 300 to 1,400 kWh depending on the size of the home, number of occupants, and efficiency of appliances).
  • Natural gas: average consumption is 10 GJ per month (in some cases up to 14 GJ). Average annual consumption is 110 GJ.

Tip: Analyze your bills for the last 12 months to account for seasonal fluctuations.

Step 2: Understanding the bill structure

Your energy bill consists of several components, and it is important to understand what you can influence through your choice of supplier.

  • Energy charges are the part that you can control through your tariff choice. For electricity, this represents approximately 25% of your total bill, and for natural gas, 33%.
  • Delivery charges include transmission and distribution, which are regulated by the Alberta Utilities and Utilities Commission and are not affected by your choice of supplier. These costs include both fixed daily charges (about $25 per month) and variable components (about 7 cents/kWh).
  • Administrative fees are charged by suppliers and can vary significantly between companies, ranging from 15 to 50 cents per day.

Step 3: Use comparison tools

  • Official UCA tool — Utilities Consumer Advocate provides a free cost comparison tool on its website ucahelps.alberta.ca. This tool allows you to compare rates based on your actual consumption and postal code.
  • Independent comparison sites — Resources such as EnergyRates.ca provide detailed comparisons of plans from different suppliers. They allow you to compare over a hundred energy retailers and plans.

What to look for when choosing

Administrative fees

One of the most important factors is the size of administrative fees. As research by the Calgary Herald shows, companies with the lowest rates often have higher administrative fees.

Examples:

  • ENMAX EasyMax: 23 cents per day at a rate of 8.99 cents/kWh
  • Sponsor Energy and partner companies: 50 cents per day with a rate of 7.94 cents/kWh

For small homes with consumption of up to 1,000 kWh per month, companies with lower administrative fees will be more advantageous, even if their rates are slightly higher.

Contract terms and early termination penalties

Many fixed-rate plans include penalties for early termination. These fees may be structured as a fixed amount or calculated based on the number of months remaining in the contract.

Important to know:

  • Most companies now allow you to terminate your contract with one month's notice without penalty.
  • Some suppliers, such as EPCOR, claim to have no penalties for canceling even 5-year contracts.
  • XOOM Energy even covers early termination penalties with your previous supplier up to $150.

Promotional rates and hidden costs

Beware of overly attractive promotional offers. Some suppliers use teaser rates that are only valid for a short time and then automatically switch customers to significantly higher rates.

Typical hidden costs:

  • Fees for exceeding consumption limits
  • Penalties for insufficient consumption
  • Additional account maintenance fees
  • Late payment fees

Contract duration

Long-term contracts (3-5 years) can offer better rates and protection against price fluctuations. However, they also mean less flexibility if market conditions or personal circumstances change.

Practical tips for choosing

Calculating the total cost

To make a fair comparison, you need to calculate the total cost, not just the rate per unit. The calculation formula is:

Monthly cost = (Consumption × Rate per unit) + (Administrative fee × Number of days) + Fixed delivery charges

Calculation example for a home with a consumption of 800 kWh per month:

  • ENMAX EasyMax: (800 × 0.0899) + (0.23 × 30) + ~25 = 71.92 + 6.90 + 25 = $103.82
  • Sponsor Energy: (800 × 0.0794) + (0.50 × 30) + ~25 = 63.52 + 15.00 + 25 = $103.52

In this example, the difference is minimal, but for larger homes, Sponsor Energy will be more profitable.

Market monitoring

If you choose a fixed rate, set a reminder to check market conditions every few months. Most contracts allow you to change your plan when market conditions improve.

Consider seasonality

Fixed rates are usually more expensive in the summer when energy demand is lower, but cheaper in the winter. The best time to sign a fixed contract is during the summer months.

Energy conservation as an alternative

Investing in energy-efficient solutions may be more cost-effective than searching for the lowest rate.

Effective measures:

  • Improve home insulation
  • Install a programmable thermostat
  • Replace incandescent light bulbs with LED bulbs
  • Upgrade appliances to energy-efficient models

Use peak and off-peak hours

Some suppliers offer tariffs with different prices depending on the time of use. Peak hours: usually 4:00 p.m. to 7:00 p.m. on weekdays, when demand is highest.

Recommendations for different types of consumers

  • Small households (up to 500 kWh/month) Priority — low administrative fees. ENMAX EasyMax or RoLR may be the best options.

  • Medium households (500-1000 kWh/month) Compare the total cost including all fees. Fixed rates from companies in the Sponsor Energy group may be advantageous.

  • Large households (over 1000 kWh/month) The most important factor is the rate per unit of energy. A lower rate per kWh may offset higher administrative fees.

  • Households with electric heating Consumption in winter can reach 2,000–3,000 kWh per month. It is critical to find the lowest rate per kWh.

Future trends and planning

Investing in renewable energy

Some suppliers, such as ATCO Energy, allow you to add 25% or 100% renewable energy to your plan. This may increase the cost, but it is an investment in a green future.

Smart home technology

Energy management systems can automatically switch appliances to low-demand hours, which is especially beneficial with time-of-use rates.

Home energy storage

With the development of home battery technologies such as EcoFlow DELTA Pro Ultra, you may want to consider partial grid independence.

Conclusion and practical steps

Choosing the best gas and electricity rates in Calgary requires a comprehensive approach. The most important thing is not to focus solely on the advertised rate, but to calculate the total cost, taking into account all fees and your actual consumption.

Recommended steps:

  1. Analyze your consumption over the past year.
  2. Use the official comparison tool at ucahelps.alberta.ca.
  3. Calculate the total cost for the 3–5 best options.
  4. Read the contract terms carefully, especially regarding penalties.
  5. Set reminders to check the market periodically.
  6. Consider investing in energy efficiency as a long-term strategy.

The best rate is the one that best suits your needs, consumption, and financial goals. Regular market monitoring and readiness to change will help you always have the most favorable terms.