Alberta’s electricity system is entering rapid change. Electric vehicles, rooftop solar and behind-the-meter technologies are reshaping electricity consumption and grid pressures. At the same time, interest is growing in time-varying rates (TVR) to encourage customers to shift when they use electricity. This issue paper explores what needs to be in place for price signals to work effectively.
Key takeaways
- Time-varying rates are not a starting point for increasing electricity demand. Price signals work best when introduced into an electricity system with strong demand-side management (DSM) already in place. Energy efficiency and demand response reduce baseline consumption, build customer understanding, and create the flexibility needed for meaningful participation.
- Affordability, reliability, flexibility, and customer choice should guide the sequencing of reforms. Technology investments − such as advanced metering and data platforms − add the most value once DSM capabilities are established, rather than serving as a prerequisite for action.
- Customer equity, trust and optionality are central to successful rate design. Time-varying rates tend to perform best when participation is opt-in or where clear and easy opt-out pathways exist. This helps to avoid uneven impacts and long-lasting sensitivity around electricity pricing.
- Electrification creates localized pressures on distribution systems that system-wide price signals alone may not address. A staged “crawl–walk–run” approach supports affordability, reliability and customer readiness while reducing risk and unnecessary system investment.
