In order to participate in any of the IESO-administered markets, prospective market participants must first apply to the IESO and pay an application fee. Once a company has met all the requirements, the IESO will authorize it to be a “market participant”.

Participants with physical connections to the grid must register their facilities with the IESO, and are also required to have registered interval meters to measure energy that flows into or out of the IESO-controlled grid. In addition, appropriate licences must be obtained from the Ontario Energy Board.

As a condition of authorization, all market participants must meet credit requirements, called “prudential” requirements. This guarantee of creditworthiness ensures that if any market participant encounters financial difficulties and is unable to pay, other market participants will not suffer undue losses. Prudential requirements are based on the market participant’s activities in the market - the requirements are not the same for all market participants.

Market Entry Organizer: A Guide to the Steps of Market Entry provides details of the authorization process. The guide is available on the Marketplace Training home page.