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News Flash

Smart Meter installation has been completed in Toronto. Time of Use Electricity Rates are scheduled to begin in February, 2010. Time-of-use billing has already started in Milton and Newmarket.

Electricity Supply Information for Ontario Hydro Consumers

Ontario hydro users have a choice when it comes to buying electricity. If you are a residential hydro consumer you have two options for purchasing hydro in Ontario:

1. Purchase Electricity from your Local Hydro Utility
If you decide to buy your hydro from your local Ontario hydro utility, the electricity rate that you pay is set by the government of Ontario (the RPP rate). This price generally changes every 6-months in April and November. Throughout 2009, utilities across Ontario replaced meters used by residential customers to introduce Time-of-Use meters, so called, "Smart Meters".
The utility companies use a different pricing formula for customers with time-of-use meters, since these meters can not only report on how much electricity you use but also when you use it.
Here are the Ontario Hydro Rates in effect since May 1, 2010 and continuing until Oct 30, 2010.

2. Purchase Hydro from an Ontario Electricity Retailer
Ontario Electricity Retailers cater to consumers who want long-term electricity price protection. Electricity retailers in Ontario can provide a fixed electricity rate for up to five years. For residential consumers, electricity retailers generally offer one fixed price per kWh, regardless of monthly consumption.
Here are links to the main electricity retailers currently providing hydro to Ontario residents showing hydro rates in effect on January 28, 2010. Be very cautious when dealing with companies that don't publish their rates on their website and never sign a contract without obtaining and comparing rates.
Bullfrog Power Retail Price
+ 3 cents/kWh
It is important to be aware that some electricity retailers are now offering rates that are based on the HOEP (Hourly Ontario Electricity Price) rate. As the name implies, this is the hourly price charged to electricity users and is extremely volatile. If you are looking for long term protection against rate increases, you much choose a supplier that offers a 5-year fixed rate. You will want to shop around to make sure that you are getting the best price available.

Watch out for "introductory rates" that only apply to the first few months of your contract. Also, some contracts allow energy retailers to charge "Pool Balancing Adjustment" fees if their cost of hydro goes up. Such fees defeat the purpose of signing up for a guaranteed fixed rate.
Canada Energy Wholesalers 7.49 cents/kWh
Direct Energy 7.99 cents/kWh
EnergyOne Canada HOEP + 1 cent/kWh
Just Energy
(Formed by merger of OESC
and Universal Energy)		 No Price Provided
on Website
Summitt Energy No Price Provided
on Website
Superior Energy 8.49 cents/kWh
When you buy electricity from a retailer, the electricity is still delivered by your local hydro utility and your hydro availability is guaranteed by your local utility. Your Ontario hydro utility will also continue to bill you for your hydro. All that really changes is the line on your bill that deals with the electricity commodity.
Some electricity retailers offer residential consumers a fixed hydro rate even for homeowners what are on interval meters (so called Smart Meters) that can determine your electricity consumption at various times during the day. Some electricity retailers only service consumers whose homes are on cumulative meters. Be sure to ask about this before signing a contract since most residential hydro customers in Ontario will soon have a Smart Meter installed if they don't have one already.

5-Year Fixed vs. 6-Month RPP Rates
The decision on whether to lock in your rate depends on your risk tolerance and how much you feel rates are likely to increase in the future.
As you can see from the following hydro rate chart, when you lock in your hydro rate, you tend to pay a little more during the first year or two of your contract, but in the later years of your contract you tend to pay less than the variable rate.
Ontario Hydro Rate Chart - RPP vs Fixed Rate
In general, if you think that electricity rates will increase substantially in the future, then it is a good idea to lock in your rate now. For example, a federal carbon tax would cause the government-regulated electricity rates to go up. Locking into a fixed rate could help you avoid such an increase.

Constant vs. Fluctuating Rates
Another factor to consider is when you use most of your electricity. The highest (on peak) rate of 9.3 cents/kWh is from 7:00 AM to 11:00 AM in the morning and from 5:00 PM to 9:00 PM in the evening. If your household is busy during these times, and you stay with the RPP, you will be using a lot of power at the peak rates. By switching to a fixed-rate plan, you are not penalized when using power during peak-demand periods. The chart below shows how your Smart Meter allows your utility to charge a different rate at different times of the day.
Smart Meter Rate vs Fixed Rate

Ontario Hydro News

Savings aren't worth inconvenience in time-of-use billing
December 15, 2009 - Kingston Whig Standard
Ernie Dewing was reviewing Hydro One's time-of-use prices. Under 2010 time-of-use billing, customers will be charged higher rates for electricity during peak use periods, mainly daytime on weekdays.

Does Hydro One think I am going to postpone my dinner to save two or three cents? Does it think I am going to do the vacuuming in the middle of the night to save, perhaps, three or four cents? And how much am I paying to get a smart meter so that I can, if I want, take advantage of these savings?

Editorial on Tax Increases in Ontario
December 11, 2009 - Brantford Expositor
It would seem that despite the growing opposition to the HST, and the simple reality that the recession has not ended for the majority of Ontarians, Dalton McGuinty will once again raise taxes on the the people of Ontario. We have already seen one of the largest tax increases in Canadian history, in the form of the health care premium.

This measure has taken thousands from the average Ontario household and is now followed by the new Smart electricity meters being installed. These will drive up electricity costs, further increasing the financial burden on already struggling families.

TransCanada CEO Expects Electricity Prices to Quadruple
September, 18, 2009 - Financial Post
Hal Kvisle, chief executive of TransCanada Corp. (a major power generating company), said electricity prices will quadruple as countries toughen their stance on greenhouse gas emissions, and governments need to brace the public for the price spike.

The price jump will come as countries wean themselves off dirty energy sources such as coal-fired power plants and implement expensive projects designed to help stem greenhouse gas emissions, such as carbon capture and storage (CCS).

Hydro Rates Scheduled to Increase May 1, 2009
April 15, 2009 - OEB Website
The Ontario Energy Board announces hydro rate increases of up to 5.5% on interval meter pricing. The price for On-Peak power will increase from 8.8 cents/kWh to 9.1 cents/kWh. Mid-peak hydro rates increase from 7.2 to 7.6 cents/kWh and off-peak rates increase from 4 cents to 4.2 cents/kWh. According to the OEB, the average bill for customers who don't yet have an interval meter will increase by about 4.0% when factoring in both the price increase and the change over to the summer electricity threshold.

Ontario Government Pushing Green Energy Act
February, 16, 2009 - Canadian Press
The Liberal government is preparing to bring in a deficit budget including a Green Energy Act that it hopes will transform the province's ailing economy and create 50,000 new jobs. Premier Dalton McGuinty has warned the province will not tolerate objections to the creation of green energy projects such as wind turbines and solar panel farms as he looks to put idled manufacturing plants back on line to create jobs.

Ontario Energy Board raises electricity rates by more than 10 per cent as generation costs swell
Ontario, October 15, 2008 - Canadian Press
The Ontario Energy Board is raising basic electricity prices by more than 10 per cent - to 5.6 cents per kilowatt-hour for use of up to 1,000 kWh a month and 6.5 cents per kWh above that.

The board says the impact will be $2.40 per month on a residence consuming 1,000 kWh monthly, compared with the summer price.

Compared with last winter's rate, the increase would be $6 a month or 12 per cent. For power use above the 1,000-kilowatt per hour level, the increase is 10.2 per cent.

Home heating costs expected to be 10 per cent higher than last year
CALGARY, October 8, 2008 - Canadian Press
It will cost most Canadians about 10 per cent more to heat their homes this winter than it did last year, despite the fact that natural gas prices have been low recently.

Michael Cleland, the head of the Canadian Gas Association, said the reason for the increase is that natural gas distributors buy their supplies well in advance of the home-heating season, which begins around this time of year and lasts until March.

OEB approves rate changes for Natural Resource Gas Ltd.
TORONTO, June 25, 2008 /CNW/
Today the Ontario Energy Board approved an increase to the natural gas supply rates Natural Resource Gas Limited (NRG) charges its customers effective July 1, 2008.

Consumers' bills will change depending on the amount of natural gas used, and type of consumer. Residential consumers who purchase their natural gas from their local utility (system gas customers) using 2,009 cubic meters (m(3)) a year will see an annual increase of approximately $196 on their bill.

Owen Sound opposes hydro rate hike
Radio Owen Sound - March 20, 2008
Hydro One is seeking the approval of the Ontario Energy Board to harmonize its customers' rates.

All Hydro One customers will pay the same rates for the same services -- which could mean an increase in hydro rates.

End to hydro rate subsidy urged
Toronto Star - Toronto (February 19, 2008)
An environmental research group says $5 billion annually that goes toward subsidizing Ontario electricity rates should be completely eliminated over the next 10. Such a move would cause electricity rates to rise 35 per cent over that time, but the Ontario Clean Air Alliance argues that higher power costs would encourage more homeowners and businesses to conserve energy and force industry to operate more efficiently.
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