2025 Alberta energy market update

Updated on April 2, 2025

3-minute read

2025 Alberta energy market update

Updated on April 2, 2025

3-minute read

If you're on a regulated rate or floating rate plan, these are the key factors that affect your monthly energy rate. 

Scenic view of Moraine Lake Alberta
Scenic view of Moraine Lake Alberta
Scenic view of Moraine Lake Alberta

Natural gas price forecast in Alberta

Our regulated natural gas rate is $2.21/GJ in April which is 55% lower^ than the average fixed rate.

Best of all, natural gas rates are forecasted to remain low so it's a great time to be on regulated gas. While natural gas rates have slightly increased since November last year, this is a normal occurence due to higher demand in winter. Learn more about the benefits of regulated natural gas and how its price is determined.

Federal Carbon Tax charges on natural gas ended on April 1

Starting April 1, 2025, you will no longer be charged a Federal Carbon Tax on your natural gas usage. 

Still see it on your bill in April? Don’t worry, it just means some of your usage was from March. Check the billing period to confirm. For example, if your bill covers March 15 to April 15, you’ll see carbon tax charges for gas used March 15-31. Any usage from April 1 onward won’t be taxed.

Also, the final Canada Carbon Rebate will be issued starting April 22, 2025. File your 2024 taxes by April 2 to get it on time! Have more questions? We’ve got answers here.

Regulated electricity changes in Alberta

On January 1, 2025, the Regulated Rate Option (RRO) was replaced with the Rate of Last Resort which is a fixed rate product set every two years. The Rate of Last Resort (RoLR) is now the default electricity rate for Albertans who have not chosen, or are not currently with, a competitive energy retailer. 

The price of Alberta's Rate of Last Resort which has been approved by the Alberta Utilities Commission (AUC), will vary across different areas of the province. If Direct Energy Regulated Services is the default energy provider in your area, our Rate of Last Resort is 12.02 cents/kWh from January 1, 2025, to December 31, 2026.

Wondering why the RRO has changed to the Rate of Last Resort and how it could affect you? Here’s what you need to know.

If you’re looking for longer-term rate stability, we have fixed-rate plans with no early exit fees, bundled rates, green energy, and other promotions.

Customers are free to purchase natural gas services or electricity services from a retailer of their choice. For a list of retailers, visit ucahelps.alberta.ca or call 310-4822 (toll-free in Alberta).

 

Weather conditions in Alberta

Did you know that the transmission and distribution charges on your energy bill are affected by weather changes too? Learn more about transmission and distribution fees and how it works.

Here are the top Alberta weather highlights that impacted your energy usage and fees on your energy bill over the last year:

March 2025

After February’s deep freeze, March brought some much-needed relief. While cold snaps lingered early on, milder temperatures took over by mid-month, giving furnaces and energy bills a bit of a break. Now that spring is here, it's a great time to start thinking seasonal maintenance to prep your home for warmer weather and keep your home energy-efficient year-round.

February 2025

Alberta was hit with an Arctic blast in February, bringing a deep freeze that lasted for days. With temperatures dropping well below normal, heating systems had to work extra hard—pushing energy use (and bills) higher. If you felt the impact on your bill, you weren’t alone. But if you find yourself constantly adjusting the thermostat, it might also be time to check your furnace. Watch this video to identify common furnace issues and find out how to prevent them.

January 2025

New year, new winter patterns! While there were times in January when winter was milder than normal, it still brought Alberta’s classic winter chill, with temperatures dipping between -11°C and -4°C. When the deep cold sets in, heaters work overtime, driving up energy use—and that can mean higher bills. Staying warm is a priority, but it’s also a good time to keep an eye on energy-saving habits to help manage costs.

December 2024

It was a bit warmer than usual in Alberta this December. Even with the milder weather, it still felt like a typical winter, complete with plenty of snowy days that kept heating systems working hard. While energy usage stayed high for heating, the slightly warmer temps took a bit of the edge off compared to colder years. 

November 2024

In November, Alberta was colder than average, with early winter temperatures and moderate snowfall driving up heating needs. As a result, Albertans will see increased energy usage and higher bills, particularly in homes with inefficient heating or poor insulation.

October 2024

October brought cooler-than-usual temperatures, with an early start to frosty mornings and colder nights across the province. Alberta also had its first snowfall of the season in October! If you haven't prepped your home for winter, here are some essential tips for keeping your home cozy, safe, and energy-efficient during the colder months.

September 2024

We've officially transitioned from summer to fall and as expected, Alberta experienced fluctuating weather and temperatures in September with a combination of warm summer-like days and cooler fall temps. Albertans had to crank up their air conditioners on the hotter days, while chilly mornings had furnaces kicking in. This back-and-forth meant energy usage was a bit unpredictable, with some homes using both AC and heat in the same week!

August 2024

There was a mix of warm and cooler days in Alberta this August, with highs in the mid-20s to low 30s. While the recent wildfires have started to ease, the lingering effects on air quality might still impact energy use as Albertans are relying on air conditioning to stay comfortable indoors. So expect to see a bump in your energy bill if you've been using air conditioning all summer long.

July 2024

Alberta has been experiencing a record-breaking heatwave since mid July. Temperatures soared past 30°C and wildfires continue to spread throughout parts of the province. Unfortunately, this hot and smoky weather is likely to stick around well into September. Stay cool and take care!

If you've been impacted by the recent wildfires and need assistance with your account, we're here to help you when you are ready. View our payment options and access government resources here.

June 2024

Summer has officially arrived! June started off warm and sunny with a few cool days mid month. If you are using an AC to keep cool this summer, you will notice a spike in your electricity usage over the next few months. Here are some ways to save energy this summer.

May 2024

Alberta had its first tornado of the year and a heavy snow dump just before the start of May. The weather remained damp and cool for the rest of the month with much-needed rain which helped reduce the wildfires in Fort McMurray and prevent it from spreading further.

April 2024

Just as fast as temperatures warmed up at the start of the month, temperatures dropped just as quickly due to an unexpected cold front which brought heavy snow dumps. Thankfully, the average temperature was relatively normal for April so there wasn't an unusual increase in heating usage. Plus, this much-needed moisture is a real win for our local farmers who have been dealing with long-term drought conditions in Alberta.

 

^Based on an average of the lowest advertised 5-year fixed rates from ATCO Energy, EasyMax, and Direct Energy as of March 25, 2025.

*The forecast is based on the current forward wholesale natural gas price curves on March 25, 2025, and will not be the exact rates. Natural gas rates can change suddenly based on weather, unplanned infrastructure outages, and global events.

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