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Home > Customers > Residential
You have three options when buying electricity:
- Regulated
Price Plan — you are charged a regulated price per kWh
by Hydro One for the electricity you use.
- Electricity Retailer — you pay the contracted price per
kWh for the electricity you use. Your contract with the electricity
retailer only affects the "Electricity" line of your bill.
This price is determined by the electricity retailer and is not regulated
by the Ontario Energy Board. Usually the price is fixed for a number
of years, but it may change during the term of the contract.
- Spot Market Pricing (only available if you have an interval
meter) — you pay actual wholesale market prices for electricity
which change every hour.
If you choose to sign with an electricity retailer or pay the spot market
pricing, Hydro One will continue to bill you for "Delivery",
"Regulatory Charges" and "Debt Retirement Charges."
An electricity retailer may offer to bill you for all your electricity
charges directly or it may contract Hydro One to continue to bill you
on the retailer's behalf for the contract price and term you signed with
a retailer.
Settling your account
You will have to settle your outstanding account if you leave the Regulated
Price Plan. If you switch to an electricity retailer you will either need
to pay a one-time charge or credit, called the "RPP Settlement"
that will appear on your final bill as a Regulated Price Plan customer.
- You will need to pay Hydro One if customers on the Regulated Price
Plan have been paying less than was paid to generators; or
- You will be reimbursed if customers on the Regulated Price Plan have
been paying more for electricity than was paid to generators.
Each month the Ontario Energy Board updates the RPP
Variance Settlement Factor on their website. You can estimate the
amount you would pay or receive by multiplying this factor by your usage
over the past 12 months.
For customers that remain on the Regulated Price Plan, the difference
is tracked in something called a variance account and incorporated into
future Regulated Price Plan prices set by the Ontario Energy Board.
Changes to your bill
If you choose to sign with an electricity retailer, you will be billed
for the Provincial Benefit and you may receive the OPG Rebate.
- Provincial Benefit — It can be a credit or a charge, and
is your share of the difference between government regulated and contract
prices for electricity paid to certain generators and the market prices
they would have received had they not been subject to government regulation
or contracts.
If you buy from an electricity retailer, the Provincial Benefit is not
included in the contract price offered by the retailer, so on your bill
it is shown as a separate item. By law, the Provincial Benefit applies
to you and cannot be transferred to an electricity retailer or any other
party.
As a Regulated Price Plan customer, you do not see the Provincial Benefit
on your bill because an estimate of this amount is already reflected
in the stable price for electricity set by the Ontario Energy Board,
shown on the "Electricity" line of your bill.
- OPG Rebate — The Ontario Government placed a cap on the
amount paid to certain generation facilities owned by Ontario Power
Generation (OPG). Customers will receive a rebate for any revenues from
those facilities exceeding an average price of 4.6 cents per kWh in
2006-07.
Customers that leave the Regulated Price Plan and sign a retail contract
will receive the OPG rebate on a quarterly basis. The total rebate amount
will be calculated using only the electricity you used after you left
the Regulated Price Plan.
Unlike the Provincial Benefit, the OPG Rebate can be assigned to a retailer.
If you do not sign this rebate over to your retailer, they are obliged
to forward it to you when it is paid out each quarter. The government
has guaranteed the OPG Rebate until April 30, 2009.
As a Regulated Price Plan customer, you do not see the OPG Rebate on
your bill because an estimate of this rebate is already reflected in
the stable price for electricity set by the Ontario Energy Board, shown
on the "Electricity" line of your bill.
Returning to the Regulated Price Plan
If you sign with an electricity retailer, you are making a commitment
to purchase electricity from the retailer for a certain period of time.
If you terminate your contract early, you may have to pay a charge. That
charge will be specified in your contract with the retailer.
If you terminate your retail contract, you will automatically return
to the Regulated Price Plan.
Questions to ask when considering a contract with an Electricity Retailer
These are some questions for you to consider before entering into a contract
with an electricity retailer:
- What is the price being offered? How does it compare with my current
service provider or other suppliers?
- What is my "RPP Settlement" amount?
- How long is the term of the contract?
- Do you offer contracts that differ in length?
- Does the price stated in the contract differ depending on the length
of the contract?
- What other fees or charges would I be required to pay?
- Would I be transferring the "OPG Rebate" to your company
if I sign?
- Would I be required to pay any charges if I leave before the contract
ends?
- When would the contract take effect?
- Does the electricity retailer have a licence from the Ontario Energy
Board?
- Does the contract change if a smart meter is installed before the
term of the contract?
- Do you offer "green power" contracts and, if so, how does
the price differ?
Evaluating your options
The Ontario Energy Board regulates the electricity sector and provides
a list
of retailers licensed to operate in Ontario. These retailers are obliged
to follow a code
of conduct.
Electricity retailers may be knocking on your door, asking you to sign-up
for a fixed electricity rate as well as other products and services. These
companies are not affiliated with Hydro One.
More Information
Read some of the most frequently asked questions
about electricity retailers. For more information, visit the Ontario Energy
Board's website at www.oeb.gov.on.ca.
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