In Alberta, customers can choose to buy electricity from a Regulated Retailer whose rates are set on a government formula or a competitive Energy Marketer.
For consumers who have not chosen to sign an agreement with the competitive supplier, the Regulated Rate Option (RRO) is available as a default supply option. This rate is calculated on 100% month-ahead projected pricing.
Competitive retailers are licensed by Service Alberta and will often purchase electricity for their customers through a combination of long-term or short-term agreements with the generation companies. They can also buy electricity directly from the wholesale spot market based on the published hourly price. This allows consumers to get as close as possible to wholesale prices, which are often well below other competitive retail or RRO prices.
For more information on competitive retailers/Energy Marketers in Alberta visit the Utilities Consumer Advocate's website.