Does Alberta Have the Most Expensive Electricity Rates in Canada?

Author: Tim Platnich

Date: September 2, 2026

In an article published in 'The Tyee' on September 2, 2026, it was stated that " ... Alberta's so-called deregulated electricity market ... has foisted the most expensive electricity rates in Canada on Albertans." The article was referencing research conducted by the Alberta Federation of Labour (AFL) from two years ago concerning the impact of the deregulated electricity market in Alberta.

The Tyee article was more specifically dealing with the issue of whether the new Meta Data Centre would foist additional costs on Albertans. The above comments were just a drive-by side-swipe.

Is it true? Does Alberta have the most expensive electricity rates in Canada? In a word: no.

I put the question to ChatGPT. ChatGPT replied that, technically, the statement is 'false because Nunavut and the Northwest Territories are more expensive'. ChatGPT suggested a more accurate statement would be that Alberta 'has among the highest residential electricity costs in Canada'.

I dug deeper into the analysis given by ChatGPT. In comparing rates across Canada, ChatGPT assumed that the electricity rate in Alberta was $.12/kWh. This is the so-called 'Rate of Last Resort' (RoLR). It is the rate charged in default if no other retail rate has been agreed to between the retail supplier and the customer. It is also known as the 'regulated rate' and it floats. Because electricity generation in Alberta is deregulated, there are many retail suppliers of electricity including: Direct Energy, Epcor, Atco, and Enmax to name a few. Customers may conduct research to determine what prices for electricity are most attractive, then enter into term contracts for the supply of electricity. Indeed, the Government of Alberta provides a 'Utility Consumer Advocate Cost Comparison Tool' to assist the consumer in deciding upon a retail supplier. Going rates for electricity under term contracts can be as low as $.0728/kWh and in some cases, subject to the fine print, lower.

In comparing rates across Canada, one must be careful to compare apples to apples. In Alberta, a consumer's electricity bill will breakout three components. First is the actual cost of the electricity consumed (the rate per kilowatt hour (kWh) multiplied by the number of kilowatt hours consumed). So, the consumption of 1000 kWh at $.0728/kWh will total $72.80 on your monthly bill. Note that using the RoLR of $.12, this amount would be $120.00 - ouch! Lesson here: beware of the RoLR as it is a floating rate that may fluctuate signicantly.

sometimes to your benefit, sometimes not as in the example above.

Another component of your bill is transmission and distribution costs. A third component is administration fees. I will call these two components together 'other costs'. As such, for comparison purposes, there will be the cost of electricity plus other costs. Under my contract with Atco, these other costs total $80.03. So, my total electricity bill cost is $152.83 before GST if I use 1000 kWh of electricity. The foregoing analysis was confirmed by ChatGPT based on the Alberta Utilities Advocate's examples for the City of Calgary. Note in Alberta we do not have a PST or HST. In provinces that charge these taxes on retail electricity, like Quebec, an additional tax of about 10% will be applied.

With these numbers, ChatGPT concludes that Saskatchewan, Ontario and PEI all have higher rates for electricity than Alberta. The all-inclusive rates per kWh are as follows, before tax: Alberta: $.152; Saskatchewan: $.186; Ontario: $.16-17; PEI $.203. Monthly costs before tax, based on 1000 kWh are as follows: Alberta: $152; Saskatchewan: $186; Ontario: $160-170; PEI: $202.97. When tax is added in, the numbers become: Alberta: $160; Saskatchewan: $206; Ontario: $181-192; PEI: $233.

It is to be noted that the most expensive electricity rates are in jurisdictions where electricity is totally regulated: Saskatchewan and PEI. One has to question the AFL's conclusion that deregulation is the cause of high electricity rates in Alberta.

Something needs to be said about the jurisdictions with the two lowest electricity rates: BC ($125.73 monthly cost before tax; $141 after tax) and Quebec ($75-80 monthly cost before tax, $86-92 after tax). First, both of these provinces are fortunate in having access to vast low-cost hydro-electric power. Alberta has limited hydro-electric power opportunities and relies upon more expensive natural gas fired electricity generation.

Second, in Quebec electricity rates are subsidized by government through below-market pricing of hydro-electric power to Quebec consumers. Hydro-Quebec is owned by the Quebec government. Rather than selling power to Quebec consumers at market rates, and using the proceeds to reduce taxes, Quebec elects to subsidize Quebec electricity consumers at the cost of the taxpayer. Quebec has the highest personal income tax rates in the country - a full 10% higher than Alberta's top marginal rates. So, would you rather pay an extra $1,000 a year in electricity costs or an extra $6,500 a year in taxes? Of course, this issue is more complicated than that, but you have my point.

A few take-aways should be noted. In Alberta, do your research to ensure that you are paying the lowest possible amount for electricity. Be mindful of the 'other costs' charged in addtion to the electricity rate. Low quoted electricity rates may be quickly offset by high administration costs, for example. Also be aware of the terms of your contract. In many cases, even a term contract can be terminated by you on one month's notice without penalty. Hence, if you sign up for a 3 year rate that becomes uneconomical, you can terminate and move to another retailer and a better rate. Some smaller retailers may charge an early exit fee. When in doubt, read the contract!

If one factors in Nunavut and the Northwest Territories, Alberta sits near the middle of the pack regarding electricity rates.