Fixed vs floating energy rates in Alberta: a plain-English guide

Fixed: a set energy price

A fixed plan sets the electricity or natural-gas unit price for the contract term. It doesn’t set how much energy you’ll use. In the UCA’s rate-choice guide, fixed rates provide predictability about that price; floating rates follow changing market conditions.

For an illustration, 500 kWh at a fixed 10¢/kWh gives a $50 energy charge. At 800 kWh, the same rate gives $80. Both exclude all other charges. Nothing about the rate changed; usage did. This is why a larger bill does not, on its own, prove your fixed plan failed.

Floating: a changing energy price

Floating and variable refer to the same category. UCA describes it as a wholesale price plus a transaction fee that changes monthly with the market. The flexibility comes with uncertainty: it is not a guarantee of a lower price.

Think in scenarios rather than one confident prediction. What would the option cost if prices fell? What if they rose during your highest-use months? And could your household comfortably absorb that difference? A retrospective calculation can tell you what a plan would have cost in the past, but cannot settle next winter’s result.

Default electricity and default gas are different

Alberta’s electricity Rate of Last Resort is updated every two years. The natural-gas Default Rate Tariff fluctuates monthly. Don’t assume both follow the same schedule. UCA also advises checking promotional expiry conditions and whether a competitive contract permits rate changes.

Choose what matters before choosing a plan

Write down your answer to these questions, then keep it beside the actual offer:

• Budget comfort: how much month-to-month variation is manageable?
• Upcoming changes: are you moving, adding an EV, or changing who lives at home?
• Attention: do you want to review offers regularly, or prioritize a simpler commitment?
• Contract fit: what happens at renewal, cancellation or the end of a promotion?

These are household preferences, not a prediction about which plan will win. Compare the total expected cost using consistent usage assumptions. For a useful starting method, read how to compare Alberta electricity costs.

What a helpful answer should show you

A clear recommendation should identify the offer, the usage period, the fees included, and any rate assumptions. If a floating option only wins under an optimistic price forecast, that should be easy to see. If two options are close, the choice may come down to certainty and effort rather than a meaningful saving.

There is no universal winner on this page. BillRobin is building a household-specific service; these guides are here to help you ask better questions in the meantime.