Fixed vs floating rates in Alberta

Learn how fixed and floating electricity and natural gas rates work in Alberta. Explore key differences between rate types and what to consider when choosing a plan.

Understanding fixed and floating rates

Fixed and floating rates are two common options available for electricity and natural gas in Alberta.

A fixed rate provides more predictable energy pricing, while a floating rate changes with market conditions.

Understanding how each rate type works can help you evaluate the benefits and considerations of each option and determine which may be the best fit for your needs.

And if your needs change later, your plan can too. Encor customers can change or cancel their plan at any time, penalty-free.

Fixed and floating rates at a glance

Fixed rate

Your energy rate stays the same for the length of your rate term.

A fixed rate may suit you if you prefer:

More predictable energy pricing
Protection from changes in market energy prices during your rate term
More consistency when planning your energy costs

Floating rate

Your energy rate changes based on market conditions.

A floating rate may suit you if you:

Are comfortable with your energy rate changing
Want your rate to reflect current market conditions
Have more flexibility in your budget when rates move up or down

The rate you choose applies to the energy portion of your bill. Other charges may still vary.

What is a fixed energy rate?

With a fixed-rate Encor plan, your electricity or natural gas rate stays the same throughout your rate term.

That can make the energy portion of your bill easier to anticipate because changes in market prices don’t change your fixed energy rate during that term.

Your total bill can still vary from month to month based on how much energy you use and other applicable charges.

A fixed rate may be a good fit if you’re more comfortable knowing your energy rate ahead of time.

Fixed rates are often preferred by customers who value stability, want greater certainty when budgeting for energy costs or would rather not worry about market price fluctuations during their rate term.

What is a floating energy rate?

With an Encor floating-rate plan, the rate you pay for electricity or natural gas changes based on market conditions. Because the rate reflects the market over your billing period, the final rate isn’t determined until the end of that period.

That means your energy rate can move up or down over time. Your total bill will also depend on how much energy you use and other applicable charges.

A floating rate may be a good fit if you’re comfortable with changing energy prices and prefer a rate that reflects the market.

Floating rates are often preferred by customers who are comfortable with market fluctuations and don't mind their energy rate moving up or down over time.

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).