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What We Do
General
| Note: On December 9, 2004, the Government of Ontario passed the Electricity Restructuring Act, 2004, (Bill 100) which reorganizes the province’s electricity sector. The legislation amends the Ontario Energy Board Act, 1998, and the Electricity Act, 1998. Read about the Electricity Restructuring Act, 2004... |
The Ontario Energy Board is responsible for regulating natural gas and electricity utilities. This includes setting just and reasonable rates. The OEB also licenses all participants in the electricity sector as well as natural gas marketers who sell to low volume customers.
To ensure an adequate level of consumer protection in the energy markets, the OEB developed codes of conduct for gas marketers and electricity retailers, and established a complaint resolution process for energy consumers. The OEB also provides a broad range of information to energy consumers about electricity and natural gas in Ontario.
The Board is responsible for electricity market oversight and ensuring that regulated gas and electricity monopoly utilities comply with Board decisions and orders. This includes conducting audits, performing compliance monitoring activities and monitoring various aspects of the gas and electricity utilities’ financial operating performance.
For more information, read about the Compliance Office and the Regulatory Audit Office.
Electricity
In the electricity sector, the Board sets transmission and distribution rates, and approves the Independent Electricity System Operator's (IESO) budget and fees. The Board also sets the rate for the Standard Supply Service for distribution utilities that supply electricity (commodity) directly to consumers. Read more about the Regulated Price Plan...
The OEB licenses all market participants including the IESO, generators, transmitters, distributors, wholesalers and retailers.
Board approval is required for the construction of electricity transmission lines longer than two kilometres.
As well, the Board is responsible for approving specific business arrangements involving the regulated parts of Ontario’s electricity industry, including:
- amalgamations between an electricity distributor and another company;
- acquisition of significant shareholdings of an electricity transmission or distribution company—in excess of 20 per cent of the voting securities;
- disposal of electricity transmission and distribution assets;
- acquisition of electricity transmission or distribution assets by an electricity generation company or affiliate; and
- acquisition of electricity generation facilities by an electricity transmission or distribution company or affiliate.
The Board also monitors markets in the electricity sector and reports to the Minister of Energy on the efficiency, fairness and transparency and competitiveness of the markets as well as reporting on any abuse or potential abuse of market power. The Board may also be asked to review the IESO market rules and consider appeals of IESO orders.
The Board does not regulate competitive services. Competitive services for electricity are all business activities other than distribution, transmission and providing Standard Supply Service.
Natural Gas
In the natural gas sector, the Board regulates Ontario's natural gas utilities which are required to submit the rates they propose to charge their customers to the Board for review and approval.
The OEB licenses all marketers who sell natural gas to residential and small commercial consumers.
The Board is required to determine if the construction of a natural gas pipeline is in the public interest by considering need, safety, economic feasibility, community benefits, security of supply and environmental impacts. Each municipality may grant a gas utility the right to deliver gas service and use road allowances or utility easements within its borders. The specific terms and conditions of these franchise agreements between the municipality and the utility are subject to Board approval.
As well, the Board recommends geological formations that are suitable for the storage of natural gas and also determines the compensation payable to landowners where storage pools are situated should the parties not agree among themselves.
Board approval is also required before a natural gas utility can sell its distribution system or amalgamate with another distributor.
The Board does not regulate competitive services. In the gas sector these include the sale of gas (commodity), water heater rentals and repair or maintenance services. These products and services are competitive services and can be obtained from various companies.