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.
