Electricity Prices in Ontario

In 2004, the format of your electricity bill was changed so that most electricity consumers in Ontario see the same four lines on their bill.

Electricity	The cost of the electricity supplied to you
Delivery	The cost of delivering electricity from generators to your utility and then to your home or business
Regulatory	The costs of administering the wholesale electricity system and maintaining the reliability of the provincial grid
Debt Retirement Charge	Set by the Ministry of Finance to pay down the residual stranded debt of the former Ontario Hydro

Changes to the “Electricity” line of your bill

The Minister of Energy has asked the Ontario Energy Board (OEB) to develop an electricity price plan to better reflect the price paid to generators.

Since April 2005, residential, low-volume and designated consumers have been paying two different prices for electricity depending on how much they use. You pay a lower price up to a certain threshold per month and a higher price for any electricity you use over that threshold.

As of May 1, 2006, the price you pay for electricity has changed to better reflect the price paid to generators. The new prices are based on an OEB forecast of the cost to supply consumers of electricity over the next 12 months and any accumulated difference between the amount consumers paid for electricity and the amount paid to generators in the previous period. The prices you pay for your electricity may change every six months based on an updated OEB forecast and any difference between the amount consumers paid for electricity and the amount paid to generators.

Residential rates and thresholds

As a residential consumer, you will pay 5.0 cents per kWh up to a certain threshold per month, and 5.9 cents per kWh you use over this threshold.

The price threshold for residential consumers is 600 kWh per month during a summer season (May 1 to October 31) and is 1,000 kWh per month during a winter season (November 1 to April 30). This means consumers will be able to use more hours of electricity at the lower price in the winter when many people need more electricity for light, indoor activities and heating.

Residential Rates & Thresholds by Season

Non-residential rates and thresholds

Non-residential consumers who are eligible for the price plan will pay 5.0 cents per kWh for the first 750 kWh they use per month, and 5.9 cents per kWh they use over this threshold. The price threshold for non-residential consumers will remain at 750 kWh per month for all seasons.

Rates for consumers with smart meters

The price plan also introduces time-of-use pricing for those consumers with smart meters. The plan outlines the specific hours for time-of-use pricing periods and sets the prices that apply to those periods.

Most Ontario consumers will not have smart meters when the price plan takes effect.

How it works: tracking accounts, options to the price plan

The difference between the amount consumers have paid for electricity and the amount that has been paid to generators will be tracked in an account. If you leave the price plan you will need to settle your share of the balance of that account. You will be reimbursed if consumers have been paying more for electricity than was paid to generators, or you will need to pay your utility if consumers have been paying less than was paid to generators.

There are several ways in which you may leave the price plan, including if you:

sign or renew a contract with an electricity retailer;
move outside of Ontario;
have an interval meter and choose to pay spot market prices; or
cease to be eligible for the RPP

If you are changing utilities within Ontario you will not have to settle your share of the account.

Changes to the “Delivery” line of your bill

As of May 1, 2006, your bill may also reflect a change in the Delivery line.

Utilities apply to the OEB for any changes to the rates they charge under the Delivery line of your bill. These rates vary from utility to utility and applications to change rates are reviewed by the OEB through a public process to determine what costs the utilities may pass on to consumers.

For more information on your utility’s application for Delivery line rate changes, please contact your local utility.

Managing your electricity costs

You can help manage your electricity costs by taking steps to use less electricity. Please contact your local utility or visit the Ministry of Energy's Web site at www.energy.gov.on.ca or call 1-888-668-4636 for further information about conservation.

You can also visit the PowerWISE Web site at www.powerwise.ca.

About the Ontario Energy Board

For more information on the OEB, the electricity sector or changes to your bill please Contact Us.