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OEB Resource Guide

The OEB and You: What and How We Regulate

Understanding the OEB’s role as your regulator can help you better meet your regulatory obligations and simplify your dealings with us.

Our responsibilities can be grouped into three main areas and are described below:

1. Market regulation
2. Protecting consumers’ interests
3. Policy initiatives

Overview of OEB Roles and Functions

Market Regulation

The OEB regulates entities in Ontario’s energy arena with the goals of promoting an efficient, viable and sustainable sector and upholding the public interest. We’re committed to maintaining, and continually improving, our regulatory processes to ensure that it is effective, fair and transparent. The integrity of the markets and consumer confidence are essential elements for a healthy energy sector.

We perform our market regulation role in the following ways:

Applying codes, rules and guidelines

To ensure an adequate level of consumer and market participant protection, as well as responsible, fair and accountable conduct, the OEB issues rules and codes that entities must adhere to. The codes establish the responsibilities and obligations of licensees to consumers and other licensees. We also issue non-binding guidelines to assist those we regulate in preparing their applications for approvals.

Licensing market participants

The OEB licenses:

• Natural gas marketers who sell to low-volume consumers (residential and small commercial consumers); and
• Most participants in the electricity sector, which include:
  • generators
  • transmitters
  • distributors
  • wholesalers
  • retailers
  • smart sub-metering providers 
  • the Independent Electricity System Operator
  • the Ontario Power Authority
  • the Smart Metering Entity

A licence from the OEB provides your entity permission to operate and outlines your regulatory requirements. Licensing is also an important tool the OEB uses to protect energy consumers.

Helping entities manage regulatory requirements

It can be a real challenge knowing what the various laws, regulations and rules are and how to comply with them. At the OEB, we believe that if you understand your regulatory obligations, it will be easier to ensure you’re in compliance.

Our goal is to work with you – and all the entities we regulate – to help you learn, plan and manage your regulatory requirements. For us that means providing useful tools and information, as well as regulating in an open and transparent manner.

 

 Monitoring and enforcing compliance

The OEB is responsible for ensuring that regulated entities are following laws, regulations and other requirements.

We monitor compliance by:

• gathering information about your company;
• conducting audits;
• carrying out compliance reviews;
• examining allegations of non-compliance; and
• monitoring various aspects of financial operating performance.

The OEB’s Compliance Office promotes education and understanding to help prevent regulated entities from unknowingly failing to meet their obligations. In the event of a compliance-related concern (a potential violation of any applicable legislation, regulation, rule, order or other requirement), as a general practice our goal is to work with you to resolve the issue. We may, when appropriate, enforce compliance in various ways, including by:

• Establishing compliance plans;
• Imposing financial penalties, which can be as high as $20,000 per day;
• Suspending or revoking your licence; and
• Issuing compliance orders.

 

Adjudication

The OEB carries out many of its regulatory functions – such as licensing, approving applications for rates and the construction of transmission lines – through an adjudicative (court-like) process. We examine evidence via oral or written public hearings, then render and communicate our decision to all affected parties. 

Protecting Consumers' Interests

Another key role of the OEB is to inform and safeguard the public on energy sector matters. We do so in several ways, including the following:

We publish consumer information

To help the public better understand energy matters and make informed energy decisions, the OEB provides a broad range of information – through our website and print materials – about electricity and natural gas in Ontario.

We maintain a Consumer Relations Centre and complaint resolution process

Our Consumer Relations Centre (toll-free 1-877-632-2727 or 416-314-2455) addresses the energy-related questions and concerns of Ontarians. We’ve also established a complaint resolution process for consumers who are experiencing a problem with their energy supplier. We recommend that consumers should first attempt to resolve the matter directly with the company involved. If they are unsuccessful in resolving the issue, then they can file a complaint with the OEB.

We ensure that entities meet their customer service obligations

Our compliance monitoring and enforcement program is the cornerstone of the OEB’s role to protect consumers and a fundamental responsibility we take very seriously. Every market participant is required to adhere to regulatory obligations for serving consumers.

Policy Initiatives

The OEB contributes to the overall policy framework of the energy sector to help ensure that the province stays on top of emerging trends and effectively meets new challenges. We do so in the following ways:

Implementing government reforms and policy initiatives

The OEB is responsible for implementing energy sector reforms and major initiatives formulated by the Government of Ontario, and by researching best practices in other jurisdictions.

Soliciting stakeholder input on energy issues

For emerging issues affecting Ontario’s energy landscape, the OEB consults widely with stakeholders in the natural gas and electricity sectors, as well as other interested groups and associations, to ensure that we understand the issues, concerns and priorities of those we serve and regulate. Such input helps the OEB develop strategies to address key challenges and opportunities.

Reporting by the Market Surveillance Panel

The OEB is responsible for the Market Surveillance Panel (MSP), formerly part of the Independent Electricity System Operator (IESO). The MSP monitors the wholesale electricity market for efficiency and abuse of market power and makes recommendations regarding redesign of the market. When the MSP makes a report recommending action related to market power, the OEB may conduct a review to determine whether market rules or licenses should be amended.

Developing codes, rules and guidelines

The OEB may develop new codes, rules or non-binding guidelines – or amend existing ones – as a result of developments in government policy or legislation or issues identified through OEB monitoring, compliance and policy activities.

Related Information

PDF Version:

CONTENTS:

Welcome to the OEB Resource Guide

Energy Sector Regulation: A Brief Overview

The OEB and You: What and How We Regulate

Understanding the Adjudication Process

Inside the OEB: Who Does What?

Reference Documents

Glossary & OEB Contacts

This information is provided as a public service. Although we endeavor to ensure that the information is as current and
accurate as possible, errors do occasionally occur. Therefore, we cannot guarantee the accuracy of the information.
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This page last updated on 2009-03-31
Copyright information: Queens Printer for Ontario, 2008