Energy Plans and Pricing

Changes to the energy plans we offer when you use electricity and natural gas were approved in November 2022 to take effect January 1, 2023. The information on this page details the offerings for the new year. To learn about the current fixed rate choice offered up to December 31, 2022, click here.

You have choice in selecting your energy pricing. We offer a variety of natural gas and electricity plans to suit your energy needs.

The energy market can be challenging to navigate which is why we provide you with easy to understand information and multiple plan options to suit your specific needs.

The choice is yours.

For residential customers, for both electricity and natural gas, you have three options:

  1. Default (Regulated Rate) or "RRO"
  2. Fixed Contract
  3. Variable Contract
Default (Regulated)
Fixed Contract
Variable Contract

The Government of Alberta is delivering energy relief under the Affordability Action Plan.

Frequently asked questions

What is the difference between the new contract options and the previous fixed rate program? 

There will now be three options for electricity and gas rates instead of two:

  1. The Regulated Rate Offering (RRO) - This is the default option and is a market-based rate calculated monthly though the calculation methodology differs between electricity and gas:
    1. Electricity is calculated based on the average monthly price of Alberta’s regulated providers.
    2. Natural Gas is calculated based on the weighted average 120-day buying window price for the forecasted volume
    • Customers who do not sign on for a contract option will default to the RRO. Customers who stay with this default option should expect the electric and gas rates to fluctuate each month.
  2. Fixed Contract Rate - The fixed contract rate allows customers to sign up for a fixed rate for a 12-month term (gas or electricity or both). The posted rate for this option will change every three months. If you sign on for a contract rate, you will sign on for a 12-month contract at the rate that is in effect for that three-month period. Customers who choose this option will be charged at the same rate each month but will see variations on their bill due to changes in their consumption. The contract terminates if you change your service location (move). Also, unlike the previous fixed rate program, you must renew your contract at the end of your 12-month term. You can select a new contract option by contacting Customer Service by phone or using the online form.
  3. Variable Contract Rate - The variable contract rate allows customers to sign up for a 12-month term where each month, you are charged an average of daily prices for the month, plus $1/GJ (gas) or $0.02/kWh (electricity). Customers who choose this option will be locked into the pricing methodology for 12 months, but each month of the contract will have a different price. The contract terminates if you change your service location (move). Also, unlike the previous fixed rate program, you must renew your contract at the end of your 12-month term. You can re-sign on to a contract option by contacting Customer Service by phone or using the online form. 
Why are the energy plans changing?  

Over time, a distortion has occurred between what was intended with the fixed rate program, and what occurred. The fixed rate program was intended to provide predictability by allowing customer to lock in the same commodity (fixed) rate each month at the current market rate rather than experiencing the ups and downs of market prices. However, the fixed rate that was set for 2022 did not anticipate the significant market price increases that occurred this year, and the City of Medicine Hat was not able to adjust the fixed rate offering and therefore subsidized many utility bills as the actual cost of providing energy to customers was higher than the fixed rate that was being charged.

These new options are comparable to what is provided by other utility companies in Alberta. The plans were adjusted to offer more options, and to ensure utility rates are closely aligned with the actual cost of providing utilities to customers (rather than a price that was established up to 12 months earlier). This methodology can be compared to mortgage rates, where the posted rate of the day determines the mortgage rate you can sign on for (whether fixed or variable).

What if I just signed up for the fixed rate program? 
All contracts in place under the fixed rate program will be honoured for the duration of the original six-month contract, so if you signed on within the six-month period prior to December 31, your contract will be honoured. If you have been on the fixed rate program for more than six months, it will expire on December 31, 2022 and you will return to the default regulated rate option. You can then choose to sign on to one of the new contract options. 
Who is eligible for these options? 

Residential, small commercial and medium commercial customers in the Medicine Hat service area are eligible for the electric rate options.

All customers in the Medicine Hat service area are eligible for the natural gas rate options.

Are there any fees and charges associated with opting in or out of the different energy price plans? 

There are no fees or charges associated with signing up for any of the energy plans. All contracts expire at the end of the 12-month term - there is no need to opt out of the program. If you wish to stay on a contract rate option, you will need to sign up again. Once you are in a contract, you cannot opt out and will be billed as per the contract for the entire 12-month period

Note: The contract terminates if you change your service location (move) and you have the choice to enter a new contract or remain on the default RRO. 

How do I know what energy plan I am currently on? 
Your utility statement will indicate which energy plan you are on beside the service (electric or gas). It is also indicated on the front of your utility bill, as well as in your email notification. 
Once I apply, do I have to renew the contract once it expires? 
Yes, you will have to sign up again. With the former fixed rate program, renewals occurred automatically. With more than one contract option now available, customers will need to sign up for one of the contract options each time their term expires. If you do not sign up for a new contract, your utility rates will go back to the default option, which is the regulated rate offering (market-based rate calculated monthly). If you wish to sign up for a contract option, call 403-529-8111 or fill out the online form. 
How do I cancel? 
Once you have committed to a contract, you are unable to cancel until the end of the contract term, which is 12 months for both the fixed contract rate and the variable contract rate. At the end of the contract, you will automatically return to the default option. 
What if I move? 
Contracts will automatically terminate when you move or sign off utility services at the service location. When you sign on to utility service at a new location, you will automatically receive the default option, which is the regulated rate offering (market-based rate calculated monthly). You will stay at the default option at the new location unless you choose to sign up for a new fixed or variable contract option. 
Do I have to sign up for both gas and electric contract rates, or can I select just one? 
You have full control of your pricing choices. You can enter a contract for either gas or electric, or both. 
How often do the contract rates change? 

Under the new energy plans, the contract rate will change either monthly or every three months.

If you sign on for a fixed contract rate, you will sign on for the rate that is in effect for that three-month period, and your contract will be in effect at that same price for 12 months.

If you sign on for a variable contract rate, you are charged an average of daily prices for the month, plus $1/GJ (gas) or $0.02 per kWh (electricity). Through this option, you are locked into the pricing methodology for 12 months, but each month of the contract will have a different price.

Why can’t I keep the contract rate that I signed on with under the fixed rate program in 2022 or earlier? 

The electric and gas rates with the former fixed rate program were updated annually, so all customers would eventually experience a price change because of these annual updates.

The new contract rate options ensure utility rates are closely aligned with the actual cost of providing utilities to customers (rather than a price that was established up to 12 months earlier).

What is the difference between contract options and budget billing? 

Budget Billing is a program where your monthly payments are the same amount each month (based on a projection of how much electricity and gas you will consume). Then, once a year, your account is reviewed to determine your actual usage and settled-up to bring your account to zero. On Budget Billing, you can still choose to be on a contract rate or the default rate. This program allows for more predictable monthly budgeting. Learn more on our Budget Billing page.

You can think of Budget Billing as picking your “payment” option.

Contract rate options allow you to sign on for a 12-month period at either a fixed rate or a variable for either gas or electricity (or both) instead of the default option. The default option is the regulated rate offering (market-based rate calculated monthly based on the average monthly price of Alberta’s regulated providers). There is no settle-up required with the contract rate options as your bills are calculated based on actual usage.

You can think of the contract rate as picking your “price” option.