The Variable Rate is directly indexed to the cost of power sold into the Alberta grid by Alberta Generators. The cost of power changes hourly and averaged for the month. To monitor what is happening in the market in real time, the following Price Alert Report is updated hourly from Alberta Power Pool, showing the swing by hour, the last 24 hour average, weekly, monthly and annual costing information.
The price is influenced by supply, demand, plant shut downs and weather. Opting for a Variable Rate can be advantageous, but monitor the trends and when prices start going in the wrong direct – switch over to a guaranteed energy rate if you can not handle the volatility.
For consumers who have not selected a competitive retailer, the government provides oversight of the Regulated Rate Option (RRO). The RRO fluctuates every month and is based on a Forecasting Methodology plus a Profit Margin paid to the RRO providers such as Direct Energy, Enmax or Epcor.
As a competitive retailer, Burst Energy also offers a monthly Variable Rate, but it is based on the Actual Market Price of energy including a Transaction Fee. Compare the government RRO rates to Real Market prices.