Alberta’s heating season is around the corner, which makes this a smart time to review your energy plan. If you have been wondering whether you should switch to a fixed rate or ride a floating rate this fall, you are not alone. In Alberta, you can choose the government regulated rate option, or pick from competitive retailers with fixed and variable plans. Your best choice depends on how you use energy, how much risk you want to take on, and how flexible you want to be.
This guide breaks down the differences, the pros and cons, and gives you practical scenarios so you can decide with confidence.
Quick definitions: fixed, floating, and the RRO
- Fixed rate: You lock a price per kWh for electricity, or per GJ for natural gas, for a set term like 1 to 3 years. Your energy price is stable. You may face early exit fees if you leave before the term ends.
- Floating rate, also called variable or market rate: Your price follows the Alberta market each month. You get the lows when the market dips, and you pay more when it spikes. With Olympus Energy, the floater has averaged 4.99 cents per kWh over five years, with no contracts and no exit fees.
- Regulated Rate Option, RRO: If you have not signed a competitive contract, you are typically on the RRO with your default utility. The RRO is a monthly rate approved by the Alberta Utilities Commission. It can be volatile, and it is not the same as choosing a competitive floating plan from a retailer.
Pros and cons at a glance
Fixed rate
- Pros: Price certainty, predictable budgeting, protection from spikes during cold snaps.
- Cons: You can get stuck above market in mild months, early exit fees are common, and you lose the upside when prices fall.
Floating rate
- Pros: Historically lower average cost over time, no long-term commitment with Olympus, easy to switch if conditions change.
- Cons: Monthly swings, higher bills if a supply crunch hits, requires a bit of tolerance for variability.
RRO
- Pros: No action needed, reasonably reflective of current market conditions.
- Cons: Often more volatile than competitive plans, little control over price, not usually the cheapest over the long run.
Alberta’s market this fall, and looking to 2025
Alberta’s deregulated market means competition is healthy and pricing moves with supply and demand. Fall and winter can push demand up, which may lift monthly market prices. Some Albertans ask, is electricity fixed or floating in Alberta 2025? The answer is that both options will continue to be available. You can choose fixed or floating with competitive retailers, and the RRO will remain a separate regulated default. If you value freedom to move with the market, a floating plan can be attractive. If you want a known price through winter, a fixed plan can make sense.
Five-year context, Olympus floater performance
If you are deciding what is better, fixed or variable rate for electricity, look at real averages. Olympus Energy’s floating electricity plan has averaged 4.99 cents per kWh over five years. That performance was achieved with no long-term contracts and no exit fees. You get flexibility to switch if a future fixed offer looks compelling, and you keep the upside when prices are soft.
A simple decision flow you can follow
Use this quick flow to choose with confidence.
1. Do you need predictable bills more than potential savings, for example during a tight budget season?
Yes: Choose fixed for 6 to 24 months.
No: Go to step 2.
2. Are you comfortable with month to month price changes if the long-term average tends to be lower?
Yes: Choose floating, like Olympus’s floater.
No: Choose fixed.
3. Do you want flexibility to switch providers without penalties if a better deal shows up?
Yes: Choose a floating plan without contracts or exit fees.
No: A fixed plan could still work, just review terms for cancellation fees.
4. Are you on the RRO and simply want a better long-term price trend?
Yes: Move to a competitive floating plan or a fair fixed plan, depending on your risk comfort.
Scenarios: what fits your situation
Renters
Priority: Flexibility and no hassle when moving.
Good fit: Floating with no contracts and no exit fees. If you move, you can cancel with short notice. The floater average of 4.99 cents per kWh over five years is a solid value signal.
Homeowners
Priority: Balance of savings and predictability.
Good fit: Many homeowners like floating in shoulder seasons, then reassess if long cold forecasts or market tightness appear. Because Olympus has no long-term contracts, you can switch to a fixed plan later if needed.
Small businesses
Priority: Cash flow and simplicity.
Good fit: Floating is often cost effective over time. If you have very tight margins, a short fixed term through peak winter can help budget stability, then return to floating. Larger commercial loads can ask Olympus about broking services to secure custom deals.
High-usage rural customers
Priority: Exposure management.
Good fit: Consider a blended approach. Keep most of your usage on floating to capture the average savings, then hedge with a portion on fixed if you want to cap risk. If you run equipment or heat outbuildings, small efficiency upgrades like smart thermostats and weather sealing can cut the peak bill regardless of rate type.
Natural gas: should you lock in for winter?
Natural gas usage rises in fall and winter. Prices can swing with weather and storage levels. If you need strict bill certainty, a fixed gas rate for the heating season can help. If you are comfortable with some monthly movement, a floating gas plan can still work. Many customers bundle electricity and natural gas for one bill and less admin. With Olympus, you can bundle for convenience, and there are no hidden fees and no long-term contracts. If you are asking, should I lock in my natural gas rate in Alberta, let your tolerance for swings be your guide. Fixed brings certainty, floating can bring savings over time.
What about the RRO vs competitive retailers?
The RRO is fine as a default, but it is not designed to be the cheapest path long term. Competitive retailers can offer lower markups, no long-term contracts, and straightforward terms. That is why many Albertans leave the RRO once they compare options.
Practical tips to lower your bill regardless of rate
- Program your thermostat so it drops a couple of degrees when you sleep or are away.
- Seal drafts around doors and windows, and check attic insulation.
Use LED bulbs and consider smart plugs for idle electronics. - Run large appliances during off-peak hours if possible.
Savings from usage cuts stack with the plan you pick.
Local choice, easy signup
Olympus Energy is 100 percent Alberta owned. You get a local team, no hidden fees, and no long-term contracts. Signing up takes minutes, and if your needs change, you can switch plans with no exit fees. If you are comparing options in the city, you can also check current electricity rates calgary to see how market pricing looks today. If you are shopping for a business in the capital region, you can review electricity providers Edmonton and see how we serve both residential and commercial customers.
Clear answers to common questions
Should I switch to fixed rate electricity in Alberta?
If you need budget certainty this winter, a short fixed term can help. If you are comfortable with monthly changes and want long-term value, a competitive floating plan is often the better bet.
What is better, fixed or variable rate for electricity?
There is no one-size answer. Fixed equals stability. Variable equals flexibility and a track record of strong long-run averages like Olympus’s 4.99 cents per kWh
floater.
Is fixed or floating electricity better for 2025?
Both options will be available. If market conditions stay moderate, floating typically wins on average cost. If you expect supply pressure, a fixed rate can smooth the
bumps.
Should I lock in my natural gas rate in Alberta?
Lock in if bill predictability matters most. Go floating if you can handle swings and want the potential for lower average cost.
Is electricity fixed or floating in Alberta 2025?
You choose. The market offers both through competitive retailers, and the RRO remains a default option.
Bottom line for fall
If you want maximum flexibility with a strong long-term average, Olympus’s floating electricity rate has delivered 4.99 cents per kWh over five years, with no contracts and no exit fees. If you want predictable winter bills, a short fixed term can work, especially for high and steady usage. Bundling electricity and natural gas under one provider keeps things simple, and small efficiency moves will trim costs either way.
Ready to explore your options, compare plans, and get set before the cold hits? We are here to help you choose the plan that fits your home or business, and to keep it simple from signup to your first bill.