PRICE OVERVIEW

What Consumers Pay

The price you pay for electricity depends on how much electricity you use - and what type of meter you have.

Homeowners and Small Businesses

Homeowners, small businesses and certain public-sector institutions that use fewer than 250,000 kilowatt hours (kWh) of electricity per year, as well as certain designated customers, are part of the Regulated Price Plan (RPP) set by the Ontario Energy Board (OEB). The threshold for residential consumers under the RPP varies by season to reflect changing consumption patterns.

As of May 1, the price of electricity for residential consumers is 7.1¢/kWh for the first 1,000 kWh consumed each month during the winter November 1 to April 30, and 8.3¢/kWh for electricity consumed per month over this threshold.

Non-residential consumers who are eligible for the price plan will continue to have a year-round price threshold of 750kWh per month. The Regulated Prices page offers more information on the new pricing structure for low-volume users.

The OEB has also introduced prices for consumers with smart meters - incorporating different rates for on-peak, off-peak and mid-peak times of the day. These consumers also have the option of paying the hourly wholesale price. See also smart meters.

Business and Industry

Businesses that use more than 250,000 kWh of electricity a year, (spending roughly $2,000 a month) pay the wholesale rate through their local utility. While small in number - roughly 55,000 - these customers account for more than half of all consumption in the province.

If a business has an interval meter, it pays the Hourly Ontario Energy Price that is posted on the Demand and Price page. If it doesn't have an interval meter, it pays a weighted wholesale price based on the consumption pattern of its local utility. These consumers may also choose to contract for electricity at a fixed rate.

Customers that pay market prices, or that have signed a retail contract for electricity also pay for the Global Adjustment, which accounts for differences between the total payments made to certain contracted or regulated generators/demand management projects and market revenues.

What Affects Price

The market works on the principles of supply and demand. When there is tight supply and high demand, the wholesale price can be expected to be higher than average. Demand is also affected by weather and human behaviour. By reducing demand, customers save money on their own electricity bills and help lower the wholesale price of electricity. Supply is determined by the operating capability of existing generators as well as when planned generation comes into service. See How the Wholesale Price of Electricity is Determined.

Electricity Prices Outside Ontario

Ontario wholesale prices are consistently lower than prices in neighbouring jurisdictions that also operate wholesale electricity markets.

East-Central U.S.: Pennsylvania, New Jersey, Maryland, Ohio and four other US jurisdictions.