The Unregulated Gamble: Is Alberta's Electricity Market Systematically Failing Consumers?
- Larry Peters
- Aug 25
- 20 min read
Across Alberta, a growing chorus of frustration echoes concerning electricity bills and the perceived instability of the power grid. Many residents and businesses are grappling with unpredictable and often soaring costs, questioning the very system designed to serve them. Alberta's electricity market stands out in Canada as one of the few that operates under a deregulated model, a significant shift initiated in 1996 with the implementation of the
Electric Utilities Act.1
When deregulation was introduced, it came with ambitious promises. Proponents championed the idea that opening the market would foster increased competition among electricity generators and retailers, stimulate innovation across the sector, and ultimately lead to lower, more stable prices for consumers.2 This vision painted a picture of a dynamic marketplace where efficiency would reign, benefiting every Albertan.
However, the reality has diverged sharply from these initial aspirations. Despite the rhetoric of a competitive market, the system's design and subsequent evolution have, in many respects, transformed it into an "unregulated gamble" for consumers. The anticipated benefits, particularly for affordability and reliability, have not consistently materialized. Instead, the market's structure has left many vulnerable to price spikes and grid instability, raising serious questions about whether it is systematically failing those it was meant to empower.
II. Alberta's Electricity Blueprint: A Deregulated Landscape
To understand the challenges facing Albertan consumers, it is essential to grasp the unique architecture of the province's electricity market. Alberta operates an "energy-only" market for electricity generation. In this model, generators compete directly to supply energy to meet demand, and their investment decisions are primarily driven by the revenues they expect to earn from prevailing market prices.4 This differs significantly from "capacity markets" found elsewhere, which provide payments to generators simply for being available, regardless of whether their power is dispatched.
The Regulators and Operators
Despite the "deregulated" label, Alberta's electricity sector is not without oversight. Several key bodies play distinct roles:
Alberta Electric System Operator (AESO): The AESO is the nerve center of Alberta's power system. Its critical mandate is to ensure the safe, reliable, and economic operation of the interconnected electric system, while also promoting a fair, efficient, and openly competitive electricity market.1 This involves round-the-clock direction of grid operations, strategic planning for transmission infrastructure, facilitating connections for new power sources, and managing the financial settlement functions of the wholesale market.6
Alberta Utilities Commission (AUC): The AUC serves as the primary regulator for the utility sector. While electricity generation is deregulated, the transmission and distribution systems—the wires and infrastructure that deliver power to homes and businesses—remain fully regulated. The AUC sets the rates for these essential services, reviews applications for new power plants, adjudicates allegations of market rule contraventions, and monitors service quality to ensure fair treatment of customers.1
Market Surveillance Administrator (MSA): The MSA acts as an independent watchdog for Alberta's electricity and retail natural gas markets. Its mission is to promote effective competition and ensure compliance with market rules. The MSA actively monitors market participant behavior, investigates suspected wrongdoing such as economic withholding, and can refer serious contraventions to the AUC, which has the power to impose substantial penalties, potentially up to $1 million per day per contravention.4
The "Regulatory Bargain" and its Historical Context
The current market structure represents a significant departure from Alberta's historical approach to utilities. Historically, public utility regulation emerged to address the inherent monopoly power of essential service providers, such as early electricity companies. The "regulatory bargain" was a fundamental principle: in exchange for exercising monopoly control, companies would be regulated to prevent excessive pricing and ensure quality service, while being allowed a fair return on their invested capital.10 This framework was designed to protect the public interest when competition was insufficient.10
The shift to deregulation fundamentally altered this balance. The complex, multi-layered regulatory framework, with generation being "energy-only" and largely unregulated on capacity, while transmission and distribution remain regulated, can lead to misaligned incentives and significant gaps in oversight. When market forces fail to deliver as expected—particularly in terms of stable prices and consistent reliability—consumers find themselves exposed to risks that the traditional "regulatory bargain" was designed to mitigate. The fragmentation means that critical aspects of the system operate under different philosophies, potentially leaving consumers vulnerable to the consequences of these structural disconnections.
Table 1: Alberta Electricity Market Structure: Regulated vs. Deregulated Components
Component | Regulatory Status | Key Characteristics | Relevant Entities |
Generation | Deregulated | Competitive market for electricity generation. Investment signals primarily from energy prices. | Independent Power Producers, Retailers |
Transmission | Fully Regulated | Rates for services are set through regulation. System planning and operation. | AUC, AESO |
Distribution | Fully Regulated | Rates for services are set through regulation, often via Performance-Based Regulation (PBR). | AUC, Distribution Facility Owners (e.g., ENMAX, ATCO Electric, FortisAlberta) |
Retail | Partly Deregulated | Consumers can choose between competitive retailers or the Regulated Rate Option (RRO). | Retailers, AUC (for RRO) |
This table provides a clear overview of how different parts of Alberta's electricity system are governed. It highlights that while generation and competitive retail are subject to market forces, the essential infrastructure of transmission and distribution remains under strict regulation. This distinction is crucial for understanding where vulnerabilities and potential failures in consumer protection can arise within the system.
III. The Price of "Freedom": Soaring Costs for Albertans
The most tangible impact of Alberta's deregulated electricity market on consumers has been the dramatic and often unpredictable fluctuations in their power bills. The promise of lower prices has largely gone unfulfilled, replaced instead by a volatile landscape of soaring costs.
Historical Price Trends: From Lows to Record Highs
Electricity prices in Alberta have shown a clear upward trend over the past three years. In 2017, the average electricity price was remarkably low, around 2.88 cents per kilowatt-hour (kWh).12 However, this period of affordability proved fleeting. By December 2022, floating rates had surged to an unprecedented 37.464¢/kWh, marking a historic high.12 Prices remained elevated throughout much of 2023, with floating rates reaching 24.751¢/kWh in June of that year.12 While 2024 has seen some moderation and stabilization in prices, projections suggest that rates could climb again into 2025 and 2026.12 This extreme volatility, where prices can swing wildly from historic lows to record highs, places a significant financial burden on households and businesses.
The "Alberta Premium": How Our Costs Compare
Beyond the internal volatility, Albertans have consistently paid a premium for their electricity compared to other Canadians. Analysis indicates that residents have "paid significantly more for electricity than if they had paid the same prices as other Canadians" since deregulation began.13 The cumulative difference in system costs between Alberta and the rest of Canada since 2001 is estimated to be a staggering $24 billion, with residential consumers alone accounting for approximately $7 billion of that total.13 This translates to an average additional cost of roughly $205 per year for every household over the 24 years of deregulation.13 This persistent "Alberta premium" underscores a fundamental issue: the competitive market, rather than driving down costs, has resulted in higher overall expenditures for consumers.
The Regulated Rate Option (RRO) vs. Competitive Contracts
The deregulated market offers consumers a choice: opt for a competitive fixed or floating rate plan from a retailer, or remain on the Regulated Rate Option (RRO), which is regulated by the Alberta Utilities Commission.1 The RRO was initially introduced as a protective measure to help consumers transition to the new market.3 However, the reality is that the majority of Albertans have chosen to stay on the RRO.3 This choice, paradoxically, often leads to significantly higher prices compared to competitive contracts.13 This situation disproportionately impacts lower-income and vulnerable households, who may lack the financial flexibility, credit rating, or even the time and resources to actively shop for and secure more favorable contract options.13
The data on soaring prices and the "Alberta premium" reveals a critical flaw: the promise of consumer choice and affordability has proven largely illusory for many. The market's design, rather than empowering consumers with genuine savings, has instead forced them into a "gamble." Those on floating rates face the uncertainty of extreme price spikes, while the default RRO often leaves consumers paying more than they might under competitive contracts, effectively penalizing those who are least able to navigate the complexities of the market. This demonstrates a systemic failure in translating theoretical market competition into consistent, widespread consumer benefit.
Table 2: Alberta Average Monthly Pool Prices (2017-2024)
Year | Average Pool Price (¢/kWh) | Notable Highs (¢/kWh) | Notable Lows (¢/kWh) | Comparison (e.g., Sept 2024) |
2017 | ~2.88 | N/A | ~2.88 | N/A |
2022 | N/A | 37.464 (Dec 2022) | N/A | N/A |
2023 | N/A | 24.751 (June 2023) | N/A | N/A |
2024 | 6.278 ($62.78/MWh) 14 | N/A | N/A | Floating: 5.251 (Sept 2024) vs. Fixed: 9.273 (Sept 2024) 12 |
Note: Pool price is the wholesale cost of electricity. Retail rates include additional charges.
This table provides a stark visual representation of the price volatility and the general upward trend in Alberta's electricity market. The contrast between the 2017 low and the 2022-2023 highs clearly illustrates the "gamble" faced by consumers, particularly those on floating rates. While 2024 saw a significant drop in average pool prices compared to 2023, falling by 53% to $62.78/MWh 14, the historical context and the inherent volatility remain a concern for long-term affordability.
IV. Flickering Lights: Reliability and Grid Stability Concerns
Beyond the financial impact, Alberta's electricity market has also faced significant questions regarding its reliability and grid stability. The "energy-only" market design, where investment is solely driven by energy prices, inherently leads to cyclical periods of both low and high prices. However, recent years have seen sustained periods of high prices that far exceed what would be required for companies to recover their fixed costs.13 This cyclical nature, particularly with the increasing integration of intermittent renewable generation, creates tangible challenges for maintaining grid reliability.
Grid Alerts and Near Outages
The Alberta Electric System Operator (AESO) issues "Grid Alerts" when the power system experiences tight supply conditions, indicating that emergency reserves are being utilized to meet demand.15 Such alerts are a clear indicator of system stress. In 2024, Alberta experienced eight separate Energy Emergency Alert (EEA) events, collectively spanning 25.4 hours. This marks the highest number of such events since 2013.14 A particularly critical incident occurred on April 5, 2024, when the AESO was forced to shed firm load—a rare and drastic measure—for the first time since 2013. This was necessitated by a combination of numerous thermal generator outages and low intermittent generation.16 Other contributing factors to grid stress frequently include extreme temperatures that drive demand for heating or cooling, fluctuating wind conditions that impact solar or wind generation output, and unplanned outages at generation facilities.15
The Integration Challenge: Renewables, Battery Storage, and Grid Modernization
Alberta has made strides in integrating renewable energy sources, with wind and solar power accounting for 20% of net-to-grid generation by 2023.17 While these sources offer significant environmental benefits, their inherent intermittency—the fact that "the wind doesn't always blow, and the sun doesn't always shine" 17—underscores the critical need for complementary technologies. Battery storage, for instance, is vital for stabilizing the grid by storing excess renewable energy and discharging it when demand is high or renewable output is low.17
However, Alberta has been notably "slow to integrate the other new technologies, especially battery storage," a factor that directly contributes to the province's reliability problems.17 Furthermore, the system's reliance on interties with neighboring jurisdictions can introduce vulnerabilities. For example, when the BC/MATL intertie was offline for planned maintenance in late September and early October 2024, it led to a high number of frequency deviations and generation trips within Alberta's system.16
The frequent grid alerts and the unprecedented load shedding event in 2024 demonstrate that the system, despite the AESO's mandate for reliable operation, is not consistently delivering on this fundamental promise. This situation suggests that the "energy-only" market, while fostering competition in generation, may not adequately incentivize the necessary investments in dispatchable capacity, energy storage, and robust transmission infrastructure required to maintain reliability in a rapidly evolving energy mix. The reliance on interties and the impact of their outages further expose systemic vulnerabilities, indicating that the "gamble" for consumers extends beyond price to the fundamental assurance of continuous power supply.
V. The "Unregulated" Edge: Market Power and Economic Withholding
A significant criticism leveled against Alberta's deregulated electricity market is the persistent issue of market power and the controversial practice of economic withholding. The very structure of the market, intended to foster competition, has inadvertently created conditions where certain players can manipulate supply and prices.
Market Concentration: Who Controls the Supply?
The deregulation process in Alberta has resulted in a "highly concentrated market".13 As of the first quarter of 2024, the five largest generation entities collectively controlled a substantial 54% of the market share.13 This high level of concentration grants these dominant companies considerable leverage, enabling them to exert market power and influence prices.
Economic Withholding: How it Works
Economic withholding is a contentious practice where large generators intentionally "withhold some of their power supply from the market".17 This creates an artificial scarcity, even if physical capacity exists, thereby driving up wholesale electricity prices. What makes this particularly problematic in Alberta is that this practice is "actually designed into the Alberta system".17 The rationale behind allowing economic withholding is to provide a mechanism for generators to recover fixed costs when wholesale prices are low.5 However, critics argue that this feature can be exploited, leading to excessive profits for generators at the expense of consumers when market conditions allow.17 The Market Surveillance Administrator (MSA) explicitly states that, unlike most other organized electricity markets, participants in Alberta are "free to unilaterally engage in strategies to attempt to raise the market price (e.g. through economic withholding)" and there is no mechanism to administer prices or offers at a proxy of cost.4
The MSA's Role in Monitoring
The Market Surveillance Administrator (MSA) plays a crucial role as the independent monitor tasked with promoting a "fair, efficient and openly competitive" market.4 The MSA investigates suspected contraventions of market rules and can refer matters to the Alberta Utilities Commission (AUC). The AUC, in turn, has the authority to apply significant penalties, potentially up to $1 million per day per contravention, in addition to requiring disgorgement of any accrued economic benefit.7
Recent Trends in Market Power
Recent data from the MSA's Q1 2025 Wholesale Market Report indicates some shifts in market dynamics. The average pool price in Q1 2025 saw a substantial decline of 60% compared to Q1 2024, reaching its lowest average for a first quarter since 2018.18 This reduction was largely attributed to the addition of "significant new thermal generation capacity" at Cascade and Base Plant.16 Consequently, the MSA reported that interim market power mitigation measures had "no material effect in Q1" 2025, as "significant supply already limited the exercise of market power".16 The Lerner Index, a key measure of market power, also dropped significantly to 9% in Q1 2025 from 27% in Q1 2024, reflecting this increased thermal supply.16
However, this temporary reprieve does not negate the underlying structural issues. The MSA also noted a major acquisition completed in December 2024, where the largest generator in Alberta increased its market share offer control from 14.7% to 23.2%.16 This increased market concentration is explicitly expected to "increase the number of hours the firm is pivotal," meaning it will have more opportunities to influence market prices.16
The combination of a highly concentrated market and the explicit allowance of economic withholding highlights a fundamental design flaw from a consumer protection standpoint. While recent market conditions, such as new thermal capacity, might temporarily suppress the manifestation of market power, the underlying ability and incentive for generators to influence the system remain firmly in place. The recent major acquisition further concentrates this power, suggesting that the "unregulated gamble" for consumers is likely to persist and potentially intensify when supply conditions tighten again. This is not merely a flaw in the system; it is a built-in feature that can benefit generators at the direct expense of consumers.
VI. Consumer Voices and Regulatory Shifts: Seeking Solutions
The persistent challenges of high prices, volatility, and reliability have amplified consumer voices and spurred various regulatory and governmental responses. These interventions, while necessary, often serve as a clear indication of the market's systemic shortcomings.
The Utilities Consumer Advocate (UCA): A Critical Watchdog
The Utilities Consumer Advocate (UCA) plays an indispensable role in safeguarding the interests of Albertan households, farms, and small businesses. Its core mandate is to ensure these consumers receive safe and reliable utility service at the lowest possible cost.19 The UCA's impact is quantifiable and substantial: since the 2015-2016 fiscal year, the UCA has actively intervened in an average of 58 Alberta Utilities Commission (AUC) rate proceedings annually.19
Through these interventions, the UCA has successfully contributed to over $2.4 billion in cost disallowances on behalf of electricity and natural gas consumers.19 Cumulatively, total cost disallowances from UCA interventions have exceeded $3.03 billion since 2013.22 These figures demonstrate that without the UCA's diligent oversight, consumers would have faced significantly higher, unjustified costs.
Beyond regulatory interventions, the UCA provides direct support to consumers. In the fiscal year 2024-25, the UCA received a staggering 23,220 calls and 1,875 emails from consumers.22 These inquiries led to 1,174 mediations, where the UCA actively worked to resolve disputes between consumers and their electricity retailers.22 Common issues requiring mediation included billing discrepancies, late bills, general customer service concerns, and disconnections for non-payment or non-application.22 The UCA also operates the vital Winter Utility Reconnection Program, which directly helped reconnect 63 households in 2024-25, preventing them from enduring dangerous freezing temperatures without essential power or heat.22
Recent Government and Regulatory Reforms
In response to market challenges, the Government of Alberta and its regulatory bodies have introduced several reforms:
Electricity Statutes (Modernizing Alberta's Electricity Grid) Amendment Act (Bill 22, 2022): This legislation, which received royal assent in May 2022, aims to enhance the reliability and affordability of Alberta's electricity system. It also seeks to integrate new technologies, such as electric vehicles, renewable power sources, and other distributed energy resources, into the grid.1
Proposed Market Reforms (REM - Restructured Energy Market): The AESO's "Market Pathways" initiative is evaluating the sustainability of the current market design and recommending changes.23 The proposed reforms are headlined by the announcement of a day-ahead market, which aims to provide greater certainty for generation and incentivize the availability of controllable power.24 Other significant changes include the introduction of offer mitigation with a low price cap to curb extreme price events, administrative scarcity pricing, a high price cap, and a negative floor price.24 The reforms also consider new ancillary service products, shorter settlement intervals, and co-optimization of energy and ancillary services.24
Policy Direction: Critically, these proposed reforms explicitly commit Alberta to maintaining an energy-only market, deliberately moving away from a capacity market design.24 While a Crown corporation option was considered as an alternative, it has been classified as a "last resort" for the time being.24 The overall objectives for these reforms are reliability, affordability, and decarbonization by 2050, with a focus on reasonable and realistic implementation.23
Criticisms of Proposed Changes
Despite the stated goals, the proposed Restructured Energy Market (REM) has drawn significant criticism from various industry stakeholders. EDC Associates, a Calgary-based consulting firm, along with 36 other organizations, described the proposed changes as a "highly complex, expensive, inefficient experiment".26 A major concern is that these changes, rather than fixing existing issues, will make Alberta's electricity markets "more expensive and less reliable"—the precise opposite of the stated objectives.26 Further criticism has been directed at the AESO for potentially bypassing the regulatory review of the AUC, an independent body that provides a crucial safeguard against unintended negative consequences from market redesign.26
The sheer volume of consumer complaints handled by the UCA and the billions in cost disallowances they have secured are undeniable evidence that the deregulated market, when left unchecked, has systematically failed to protect consumers from excessive costs and unfair practices. This substantial regulatory intervention is not merely fine-tuning but a direct response to deep-seated structural problems. Furthermore, the strong and widespread criticism from industry stakeholders regarding the new proposed reforms suggests that even the attempts to fix the system are viewed as potentially exacerbating existing problems or introducing new ones. This points to a continuous "gamble" where policy changes are often reactive and may not address the fundamental root causes, trapping consumers in an ongoing cycle of uncertainty and financial burden.
Table 3: Key Consumer Advocacy Outcomes by UCA (2015-2025)
Fiscal Year | UCA Regulatory Expenses | UCA Cost Disallowances (Millions CAD) | Return on Investment ($ for every $1 spent) | Total Calls/Emails Received | Total Mediations Conducted | Households Reconnected (Winter Utility Program) |
2015-16 | $4,635,545 | $30.1 | $6.50 | N/A | N/A | N/A |
2016-17 | $3,917,993 | $204.3 | $52.14 | N/A | N/A | N/A |
2017-18 | $4,421,046 | $235.2 | $53.19 | N/A | N/A | N/A |
2018-19 | $4,002,725 | $278.9 | $69.68 | N/A | N/A | N/A |
2019-20 | $3,807,506 | $168.9 | $44.37 | N/A | N/A | N/A |
2020-21 | $3,120,087 | $281.2 | $90.13 | N/A | N/A | N/A |
2021-22 | $2,559,779 | $92.5 | $36.13 | N/A | N/A | N/A |
2022-23 | $2,906,361 | $63.1 | $21.70 | N/A | N/A | N/A |
2023-24 | $2,764,866 | $829.3 | $299.95 | N/A | N/A | N/A |
2024-25 | $2,193,196 | $280.1 | $127.74 | 23,220 calls, 1,875 emails 22 | 1,174 22 | 63 22 |
Total (2015-2025) | $34,297,866 | $2,467.2 | $71.93 | >23,220 calls/emails | >1,174 | >63 |
Total (2013-2025) | N/A | >$3,030.0 | N/A | N/A | N/A | N/A |
Data compiled from UCA Annual Reports.19 Specific call/email/mediation/reconnection data only available for FY 2024-25.
This table powerfully illustrates the tangible impact of consumer advocacy in a market that has repeatedly demonstrated failures. The billions of dollars in cost disallowances secured by the UCA directly represent money saved for Albertans, proving that without such robust oversight, consumers would have paid even more. The high volume of calls, emails, and mediations handled by the UCA further highlights the widespread nature of consumer issues, reinforcing the argument that the market is not self-correcting and requires continuous intervention to protect its participants.
VII. Big Rock Power's Vision: Powering a Fairer Future
At Big Rock Power, there is a firm belief that the original promise of deregulation—fostering innovation and efficiency within the electricity sector—can still be achieved. However, this can only happen if the market structure genuinely prioritizes consumer protection and grid stability above all else. The current situation, characterized by high prices, volatility, and reliability concerns, despite existing regulatory bodies and proposed reforms, indicates that incremental changes alone may not be sufficient. The "unregulated gamble" for consumers can only be addressed by a fundamental re-evaluation of the market's core principles.
Emphasizing Balanced Solutions
Big Rock Power advocates for a holistic approach that transcends reactive "Band-Aid" solutions 17 and instead focuses on fundamental, proactive reforms. This requires a shift from an ideological adherence to an "energy-only" market to one that explicitly balances competition with robust consumer protection, long-term investment signals, and a resilient grid.
Prioritize long-term affordability and reliability: The market needs mechanisms that ensure stable, reasonable prices for consumers and a robust, resilient grid capable of meeting demand under all conditions. This focus should move beyond short-term market clearing to consider the enduring welfare of Albertans.
Incentivize diverse and dispatchable generation: Policies must encourage strategic investment in a balanced energy mix. This includes continued growth in renewables, but critically, also reliable baseload and dispatchable power sources, alongside significant investments in battery storage and other flexible technologies to manage the inherent intermittency of renewable generation.17
Strengthen market oversight with proactive measures: Regulatory bodies like the MSA and AUC should be empowered with greater authority and tools to prevent market power abuse before it impacts consumers. This could involve more stringent offer mitigation rules, real-time monitoring capabilities that go beyond current limitations, and swift, decisive enforcement actions.
Empower consumers with transparent and predictable options: The complexity of electricity bills and rate structures needs to be simplified. Consumers deserve transparent and predictable options that are not merely a gamble. Initiatives that enable consumers to actively participate in demand response programs and benefit from smart grid technologies, such as interval meters that allow response to real-time price signals, should be widely implemented.25
Strategic grid modernization: Investments in grid modernization and new technologies—including battery storage, artificial intelligence, and digital controls 17—must be made with clear, demonstrable benefits for consumers. These costs should not simply be passed on as rising fees, but rather lead to tangible improvements in service quality and affordability.
Big Rock Power's Commitment
Big Rock Power is committed to being a part of the solution. The company is dedicated to these principles, actively working towards innovative and responsible energy solutions that genuinely serve all Albertans. By advocating for a market that is truly fair, efficient, and reliable, Big Rock Power aims to contribute to a future where the promise of deregulation is finally realized for every consumer. This positions Big Rock Power not just as a critic of the current system, but as a proactive thought leader offering a viable, consumer-centric alternative for Alberta's energy future.
VIII. Conclusion: Reclaiming the Promise of Deregulation
Alberta's deregulated electricity market, while conceived with the noble goals of fostering competition, innovation, and lower prices, has largely become an "unregulated gamble" for its consumers. The evidence is clear: persistent high prices, significant price volatility, and concerning reliability challenges have plagued the system. This is exacerbated by a market design that, by its very nature, permits and even incentivizes market power abuse through economic withholding.
The substantial and ongoing interventions by the Utilities Consumer Advocate, which has saved Albertans billions in unjustified costs and mediated thousands of disputes, serve as a stark reminder of the market's systemic failures. While recent reforms and new thermal capacity have offered some temporary relief from extreme price spikes, the fundamental structural issues, including increasing market concentration, remain.
The status quo is unsustainable for Albertan consumers and poses a risk to the province's economic future. Reclaiming the true promise of deregulation requires a fundamental shift in approach. It demands a collaborative effort from industry, government, and consumers to build a truly fair, efficient, and reliable electricity market. This means prioritizing long-term affordability and reliability, incentivizing a diverse and dispatchable energy mix, strengthening market oversight with proactive measures, and empowering consumers with transparent and predictable options. Only through such comprehensive and principled reforms can Alberta move beyond the "unregulated gamble" and deliver an electricity system that genuinely serves the interests of all its citizens.
Based on the provided article, here are five frequently asked questions that could be used for the Big Rock Power website or for an FAQ section on LinkedIn.
Frequently Asked Questions About Alberta's Electricity Market
1. What does it mean that Alberta's electricity market is "deregulated"?
Alberta's electricity market shifted to a deregulated model in 19961. This was meant to create more competition among generators and retailers, fostering innovation and leading to lower prices for consumers2. However, the article suggests that the system has instead become an "unregulated gamble" for consumers, with inconsistent affordability and reliability3.
2. Why are Alberta's electricity bills so high and unpredictable?
The promise of lower prices has largely gone unfulfilled, replaced by a volatile market with soaring costs4. Prices can swing wildly, with floating rates surging to a historic high of 37.464¢/kWh in December 20225. This volatility places a significant financial burden on households and businesses6. Additionally, since deregulation began, Albertans have paid what's been called an "Alberta premium," with a cumulative difference of $7 billion in system costs for residential consumers compared to the rest of Canada7.
3. What is the difference between the Regulated Rate Option (RRO) and competitive contracts?
The deregulated market gives consumers a choice between staying on the Regulated Rate Option (RRO) or opting for a fixed or floating rate plan from a competitive retailer8. The RRO was intended as a protective measure, but data shows that it often leads to significantly higher prices compared to competitive contracts9. This situation disproportionately impacts vulnerable households who may lack the resources to actively shop for better options10.
4. Is the power grid in Alberta reliable, and what are "Grid Alerts"?
The article raises significant concerns about the grid's reliability and stability11. The Alberta Electric System Operator (AESO) issues "Grid Alerts" when the power system is under stress and emergency reserves are being used12. In 2024, Alberta experienced a high number of these alerts, and in one critical incident, the AESO had to shed firm load for the first time since 2011. This shows that the system is not consistently delivering on its promise of reliability14.
5. How is Big Rock Power different from other power companies?
Big Rock Power believes that the original promise of deregulation—innovation and efficiency—can still be achieved, but only if the market prioritizes consumer protection and grid stability15. The company advocates for a holistic approach that focuses on long-term affordability, reliability, and diverse energy sources, moving beyond short-term fixes. Big Rock Power is committed to being part of the solution by offering a consumer-centric alternative to the current market.
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