Electricity rates in Edmonton are a major concern for homeowners and businesses, especially with new regulatory changes taking effect in 2025. Alberta’s evolving energy sector, including the introduction of the Rate of Last Resort (ROLR), will influence pricing and consumer choices. Understanding these changes is key to managing energy costs effectively.

This article breaks down the 2025 electricity rate forecast, factors driving price fluctuations, and strategies like residential solar energy to reduce energy expenses.

Current Electricity Market In Edmonton 2025

With shifting electricity rates, Edmonton residents must navigate market changes to make informed choices. The introduction of the ROLR marks a major shift in the pricing structure, impacting consumers who rely on regulated electricity. Below are key aspects shaping the market today.

Deregulated Market Structure

Alberta operates under a deregulated electricity market, giving consumers the choice between regulated and competitive rate plans. 

This structure allows flexibility but also leads to fluctuating prices driven by supply and demand, market conditions, and regulatory adjustments.

Rate of Last Resort (ROLR) Introduction

As of January 1, 2025, the Regulated Rate Option (RRO) has been replaced by the ROLR. This change introduces a fixed electricity rate of approximately 12 cents per kilowatt-hour (kWh) until 2027, offering price stability for those on regulated plans.

Previously, the RRO was highly volatile, with rates exceeding 30 cents/kWh during peak demand periods. The ROLR aims to protect consumers from extreme spikes, but Edmonton residents still have the option to select fixed-rate or floating-rate plans from private energy retailers.

Edmonton Electricity Rates 2025 Forecast

1. Stable Prices Under ROLR

The fixed 12 cents/kWh rate under the ROLR ensures cost predictability for those opting for regulated pricing. Compared to the price surges of recent years, this provides relief to consumers seeking stability.

2. Competitive Market Trends

For those choosing private electricity plans, rates will still fluctuate based on:

• Wholesale Market Trends – Market demand and supply shortages can influence fixed-rate contracts.
• Natural Gas Prices – Alberta’s reliance on natural gas for power generation means gas price changes directly affect electricity rates.
• Renewable Energy Growth – Increased solar and wind energy production may lead to long-term cost reductions.

3. Seasonal Fluctuations Expected

• Winter: Higher heating demand may push floating rates slightly higher.
• Spring & Summer: Increased renewable energy production could result in more competitive pricing.
• Fall: Electricity demand rises again as temperatures drop, impacting variable rates.

Factors Impacting Electricity Rates in Edmonton

1. Government Policies & Regulations

Alberta’s regulatory landscape plays a key role in electricity pricing. While the ROLR helps stabilize costs, future government policies—such as carbon pricing or infrastructure upgrades—could impact rates beyond 2027.

2. Distribution & Transmission Costs

Electricity bills in Edmonton include distribution and transmission fees, which are determined by utility providers like EPCOR. These fees can account for 30-50% of total electricity costs and may fluctuate based on grid maintenance and expansion needs.

3. Growth in Renewable Energy

Alberta’s push for renewable energy, including solar, wind, and battery storage, could reduce long-term reliance on natural gas. As more renewable capacity is added to the grid, electricity rates may stabilize or decrease.

4. Rising Energy Demand

Edmonton’s growing population and industrial expansion mean increasing electricity demand. This could strain the power grid, leading to temporary price hikes during peak usage periods.

How to Manage Your Electricity Costs This Year in Edmonton

1. Choose a Fixed-Rate Plan

A fixed-rate electricity plan locks in a set price, protecting consumers from market fluctuations. Edmonton residents can explore 1- to 5-year contracts from competitive energy retailers to secure stable pricing.

2. Improve Energy Efficiency

Reducing electricity consumption lowers overall costs. Consider:

• LED lighting to decrease power usage.
• Smart thermostats for optimized heating and cooling.
• Energy-efficient appliances to cut down electricity bills.

3. Invest in Solar Energy

Solar panel installation can reduce long-term electricity costs. Alberta offers rebates and financing programs like the Clean Energy Improvement Program (CEIP), making solar more accessible for homeowners and businesses.

4. Monitor Electricity Usage

Using smart meters and energy-tracking apps helps identify peak consumption periods, allowing consumers to adjust usage and avoid higher costs.

What Edmonton Residents Should Expect in 2025

For Homeowners

• Stable pricing under the ROLR, reducing volatility in electricity bills.
• Options to lock in competitive rates with private retailers.
• Opportunities for solar energy adoption with available incentives.

For Businesses

• Predictable budgeting with the fixed ROLR rate.
• Potential demand charges based on peak usage.
• Renewable energy and efficiency incentives to cut operating costs.

For Renters

• Choice between default ROLR pricing or private retailer plans.
• Possible rent adjustments due to electricity cost fluctuations.

Edmonton Energy Forecast For 2025 – Your Common FAQs Answered

How will the ROLR impact small businesses in Edmonton?

The ROLR provides a stable rate, but businesses with high energy use may save more with private energy plans.

Are there any rebates for energy efficiency in Edmonton?

Yes, programs like CEIP offer rebates for solar panels, smart thermostats, and energy-efficient upgrades.

Will distribution and transmission fees increase in 2025?

Possibly. EPCOR may adjust fees for grid maintenance, affecting total electricity costs.

What if I move while on a fixed-rate electricity plan?

Many providers allow contract transfers, but early cancellation may have fees.

How does Edmonton’s weather affect electricity rates?

Cold winters and hot summers increase demand, causing higher costs for floating-rate plans.

Planning For 2025 and Beyond

The introduction of the Rate of Last Resort (ROLR) marks a significant shift in Edmonton’s electricity market, ensuring a fixed rate of ~12 cents/kWh until 2027. This change protects consumers from the unpredictable rate spikes of previous years.

However, competitive electricity plans may still provide better savings, particularly for those opting for fixed-rate contracts. Exploring renewable energy options and improving energy efficiency can also help reduce costs.

Take Control Of Your Energy Costs With Collide Energy!

Looking to lower your electricity costs in 2025? Now is the time to invest in solar. Installing solar panels in Edmonton, AB, is a smart way to reduce long-term energy expenses while gaining control over unpredictable electricity rates. 

As utility prices fluctuate, solar power provides stability by allowing homeowners to generate their energy, reducing reliance on the grid and avoiding rising costs. Edmonton solar installer Collide Energy offers customized solar solutions designed for maximum savings and efficiency. 

With net metering and battery storage options, homeowners can further optimize their energy use and financial benefits. For personalized energy plan recommendations and expert solar solutions, contact Collide Energy today.