Alberta's regulated natural gas price went up for October, though the gas itself is still a small part of a typical bill. In a press release dated September 30, 2026, Direct Energy Regulated Services (DERS) set its October default rate at $1.458 per gigajoule (GJ) for customers in the ATCO Gas North and South service territories who have not signed with a competitive retailer. That is $0.334 per GJ more than September's $1.124.
How the October rate was set
The short answer: a market price plus a small catch-up for earlier months.
According to the release, the October rate reflects a market price for October supplies of about $1.419 per GJ, as reported by NGX, plus an adjustment of $0.039 per GJ for September and prior months. DERS states that the Alberta Utilities Commission has verified the method it uses to calculate the rates.
The Alberta Utilities Commission's current rates page notes that natural gas default rate tariff charges for regulated retailers are updated monthly.
What a typical bill looks like
The short answer: about $101 in the north and $88 in the south for 9 GJ.
| ATCO Gas territory | Area | Typical October bill (9 GJ) |
|---|---|---|
| North | In and north of the City of Red Deer | about $101 |
| South | South of the City of Red Deer | about $88 |
DERS attributes the gap between the regions to differences in transmission and distribution charges set by ATCO Gas.
The commodity is a small part of the bill
The short answer: on these numbers, gas itself is roughly an eighth of a typical October bill.
Our arithmetic, using the release's figures: 9 GJ at $1.458 is about $13.12 for the gas itself. Against a typical bill of about $101 in the north, that is roughly 13%; against $88 in the south, roughly 15%. Delivery, transmission and other charges make up the rest. These shares will change as consumption rises through the winter and as monthly rates move.
Electricity: the Rate of Last Resort period ends in 2026
The short answer: Alberta's regulated electricity rate is fixed until December 31, 2026.
The AUC's page says the Rate of Last Resort offered by regulated electricity retailers is fixed for a two-year period from January 1, 2025 to December 31, 2026. Contractors selling electric heat pumps or electric backup heat in Alberta should watch for the next period's rates, which affect operating-cost comparisons from January 2027.
Analysis: what this means for heating contractors
This section is HeatingNews.ca analysis, not part of the DERS release or the AUC page.
Alberta is Canada's most gas-heated province, with natural gas as the primary heating energy for 76% of households in Statistics Canada's 2023 survey. When the commodity costs about $1.50 per GJ and makes up a small share of the bill, fuel-switching arguments built on gas prices are weak. Contractors who copy heat pump messaging from Quebec or the Maritimes into Alberta will struggle to make the numbers work.
What tends to work better in Alberta:
- Sell comfort, reliability and equipment age. A 20-year-old furnace before a cold snap is a stronger reason to call than a monthly gas price. Our heating-season ads shift budget toward cold forecasts for this reason.
- Financing as the program story. With no province-wide home heating rebate found on official sources, municipal Clean Energy Improvement Program financing, available only in participating municipalities, is often the most relevant "program" message. Confirm with the program administrator before advertising it.
- Explain fixed delivery costs. Homeowners are often surprised that lower gas use does not cut the bill proportionally. An explainer that shows the split, with dated figures, builds trust. See our Alberta page for regulators and programs.
Default rate or retail contract
The short answer: homeowners who never chose a retailer pay the monthly default rate.
In ATCO Gas territories, a customer who has not signed with a competitive retailer is served by DERS at the default rate, which changes monthly. Customers on a fixed-price retail contract pay their contracted price instead. When a homeowner tells a contractor their gas is "expensive" or "cheap", it helps to know which of the two they are on before discussing operating costs.
What to watch next
DERS publishes a new default rate at the start of each month. For a province where heating economics run the other way, read our report on Hydro-Québec's 2026–2028 rates, or return to the newsroom.
Frequently asked questions
What is Alberta's default natural gas rate for October 2026?
Direct Energy Regulated Services set it at $1.458 per GJ for customers in the ATCO Gas North and South territories who have not chosen a competitive supplier. The September rate was $1.124 per GJ.
How is the rate calculated?
According to the release, it reflects a market price for October supply of about $1.419 per GJ as reported by NGX, plus a $0.039 per GJ adjustment for September and earlier months. The release says the Alberta Utilities Commission has verified the calculation method.
What will a typical October bill be?
The release estimated about $101 for a typical residential customer in ATCO Gas North and about $88 in ATCO Gas South, based on 9 GJ of use. The difference reflects ATCO Gas transmission and distribution charges.
Does this rate include delivery charges?
No. The per-GJ default rate is the commodity price only. Delivery and other charges from the distribution utility are added on the bill.
What happens to Alberta's regulated electricity rate after 2026?
The Alberta Utilities Commission's page says the Rate of Last Resort is fixed for January 1, 2025 to December 31, 2026. Rates for the following period are set separately.