OEB Resource Guide

The OEB and You: What and How We Regulate

Understanding the OEB’s role as your regulator – what we regulate, our regulatory approach and so on – can help you better meet your regulatory obligations and simplify your dealings with us.

Our responsibilities can be grouped into three main areas:

Market regulation
Representing consumers’ interests
Policy initiatives

In carrying out these functions, we use a number of processes. These are summarized in the chart below and discussed in the following pages.

Overview of OEB Roles and Functions

	Market Regulation	Representing Consumers' Interests	Policy Initiatives
What We Do	Regulate and monitor Ontario’s energy sector	Inform and safeguard consumers on energy matters	Contribute to the regulatory policy framework of the energy sector
Why We Do It	To promote an efficient, viable and sustainable energy sector and uphold the public interest	To help energy consumers make informed decisions and ensure their interests are protected	To meet emerging energy trends and challenges in the most effective way
How We Do It	Applying codes, rules and guidelines Licensing market participants Helping firms manage regulatory requirements Monitoring and enforcing compliance (e.g., audits, investigations) Adjudication (e.g., rate applications, facilities approvals)	Publishing consumer information Maintaining a Consumer Relations Centre and complaint resolution process Ensuring firms meet their customer service obligations	Advising the government on energy matters Implementing government reforms and policy initiatives Soliciting stakeholder input on significant energy issues Reporting by the Market Surveillance Panel Developing codes, rules and guidelines
Who Is Responsible at OEB?	Market Operations Legal Services	Communications & Public Affairs Market Operations Legal Services	Strategic Planning & Policy Development

Market Regulation

The OEB regulates firms 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 they are effective, fair and transparent. The integrity of the markets and consumer confidence in those markets are essential elements for a healthy energy sector.

We perform our market regulation role in several 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 firms must adhere to in their operations. 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

The Independent Electricity System Operator

The Ontario Power Authority

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

Helping firms 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 firms we regulate – to help you learn, plan and manage your regulatory requirements. For us that means providing useful tools and information (refer to examples in box on page 8), as well as regulating in an open and transparent manner.

What the OEB is doing to assist you with regulatory issues:
We issue bulletins that provide information and direction on how to meet your regulatory obligations.
We have set up a dedicated OEB hotline (416-440-7604) and email (market.operations@oeb.gov.on.ca) specifically to address any compliance-related questions and concerns you may have.
Handbooks, filing procedures and other strategies have been created to help you understand what you need to do for different processes. For instance, our Electricity Distribution Rate Handbook outlines the policies and procedures for distributors to follow in applying for distribution rates.
Our online Regulatory Calendar provides you with up-to-date information on scheduling of major applications, rules, codes and consultative policy initiatives. This provides a clear sense of the OEB’s timing and provides you with a better understanding of the OEB’s progress on key initiatives and processing of applications.
We have established “performance standards” for regulatory applications that outline our obligations to you.

Monitoring and enforcing compliance (market surveillance)

The OEB is responsible for monitoring how well the energy markets are working and for ensuring that regulated entities are following laws, regulations and other requirements.

How do we monitor compliance of your firm? We may do so by:

Gathering information about your company;

Conducting audits;

Carrying out compliance reviews;

Investigating 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 firms from unknowingly failing to meet their obligations. In the event of a compliance-related concern or problem (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. The adjudication process is discussed further in the section “Understanding the Adjudication Process” on pages 11–16.

What does the OEB not rate regulate?

The OEB does not regulate the prices charged for competitive services:

In the gas sector, these include the sale of gas by marketers and water heater rentals and repair or maintenance services. These products and services can be obtained from various companies.

In the electricity sector, these include all business activities other than distribution, transmission and providing Standard Supply Service.

Representing Consumers' Interests

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

Publishing 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 Web site and print materials – about electricity and natural gas in Ontario. For more information please click here...

Maintaining a Consumer Relations Centre and complaint resolution process

The OEB has a dedicated Consumer Relations Centre (toll-free 1-877-632-2727 or 416-314-2455) to address 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 always recommend to consumers that their first step should be to attempt to resolve the matter directly with the company involved. If they are unsuccessful in resolving the issue, then we tell them that they can file a complaint with the OEB.

Ensuring firms meet their customer service obligations

Our compliance program (compliance monitoring and enforcement) 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 in an effort to ensure that the province stays on top of emerging trends and meets new challenges in the most effective manner. We do so in the following ways:

Advising government on energy matters

The OEB provides advice on energy matters referred to it by the provincial government.

Implementing government reforms and policy initiatives

The OEB is responsible for implementing energy sector reforms and major initiatives formulated by the Government of Ontario.

Soliciting stakeholder input on energy issues

For significant emerging issues affecting Ontario’s energy landscape, the OEB consults widely with stakeholders in both the natural gas and electricity industries, as well as other interested groups and associations, to ensure that we understand and appreciate the issues, concerns and priorities of those we serve and regulate. Such input helps the OEB develop strategies to better 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 function of the MSP is to monitor the wholesale electricity market for efficiency and abuse of market power and make recommendations regarding redesign of the market. Where 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

Codes, rules and non-binding guidelines are key regulatory tools. Developments in government policy or legislation and the need for changes arising from OEB monitoring and compliance activities, as well as OEB policy initiatives, may result in the development of new codes, rules and guidelines or amendments to existing ones. Read about the Board's active Key Initiatives...