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Home > Electricity Updates
In 2005 when the Regulated Price Plan (RPP) was introduced, municipalities,
universities, colleges and hospitals (which are referred to as the MUSH
sector) with demand greater than 50 kW per month as well as farms and
some other designated customers were given eligibility to RPP for three
years until March 31, 2008.
The government has extended the RPP deadline for the MUSH sector and
other designated customers to May 1, 2009. The May 1st
date was chosen to align with the Ontario Energy Board's RPP price-setting
schedule.
In the interim, MUSH customers would still be able to exit RPP with an
interval meter or by signing a retail electricity contract.
Once RPP eligibility ends as of May 1, 2009, MUSH customers have two
options for how their account is billed for electricity:
- Enrol with an electricity retailer and pay the contracted price for
electricity, or
- The spot market price for electricity will be billed.
Customers with an interval meter will be billed the Hourly Ontario Energy
Price for electricity. While customers with a conventional meter (including
Smart Meters) will be billed the Weighted Average System Price for electricity,
unless they decide to install an interval meter.
Why did the government extend the RPP eligibility for municipalities,
universities, schools and hospitals?
The government extended the RPP eligibility to May 1, 2009 to the MUSH
sector since they realized many customers were not ready for an April
1, 2008 implementation date. The additional time will allow customers
to educate themselves on the options for purchasing electricity.
What are my options for purchasing electricity as of May 1, 2009?
You have two options for purchasing electricity:
1) You can enroll with a retailer and pay a contracted price for electricity,
or
2) You will be billed the spot market price for electricity. Customers
with an interval meter will pay the Hourly Ontario Energy Price.
Customers with a smart meter or conventional meter will pay the Weighted
Average System Price.
What changes will I see on my bill when my RPP eligibility ends?
- You'll no longer be billed RPP prices for electricity. You'll either
pay the spot market price for electricity or a contracted price for
electricity, if you have signed with a retailer.
- You'll be billed a monthly Provincial Benefit. This can either be
a charge or a credit depending on prevailing market prices for electricity
and the mix of regulated and contract prices.
- You'll also be billed a one-time RPP Settlement amount that will appear
on your electricity bill when you leave the Regulated Price Plan.
I am a municipality/university/school/hospital with a monthly demand
of less than 50 kW per month. Will I still be billed RPP prices after
May 1, 2009?
Yes, as long as your average monthly demand is under 50 kW per month or
250,000 kWh per year, you will be billed RPP prices.
What is the spot market price?
With spot market pricing you pay actual wholesale market prices for electricity.
These prices are volatile, fluctuating up and down every hour. Price is
determined by market conditions and it changes every hour. Your electricity
cost will be based on:
- How much you use;
- Your peak demand or how quickly you draw electricity from the system;
and
- The time of day and week you use it (if you have an interval meter).
What factors influence the spot market price for electricity?
There are many factors that influence pricing:
- One is the season in which electricity is used - prices are generally
higher in winter and summer than they are in the spring and fall.
- Another is the time of day. Prices tend to be higher in late afternoon
and early evening.
- The source of electricity is another factor, some being more expensive
to run than others. When demand for electricity is high, more expensive
generation is needed to meet that demand, driving up the cost of power.
How do I know if I will benefit from paying the spot market price
for electricity?
You will need to know your own consumption patterns. Take a look at how
you use electricity, where you use it and most importantly when you use
it. This basic analysis allows you to compare and evaluate your electricity
use profile against hourly pricing and determine what kind of savings,
if any to expect.
What is the Hourly Ontario Energy Price for electricity?
The Hourly Ontario Energy Price is a weighted average based on Ontario
demand and fluctuates every hour throughout the day. The electricity charge
on your bill would reflect your consumption pattern. You will need to
have an interval meter in order to pay hourly prices. For more information,
visit the IESO's website at www.ieso.com.
How is the Hourly Ontario Energy Price for electricity set?
It is determined through a competitive process of generators bidding to
supply electricity into the market. The price fluctuates throughout the
day according to supply and demand.
What are the advantages of paying Hourly Ontario Energy Price?
In the wholesale market, prices rise and fall depending on the availability
of supply. This provides customers with an incentive to use electricity
more wisely - to shift electricity use to times of the day when demand
and prices are lower. By managing peak demand and using your interval
meter to take advantage of price fluctuations, you can lower your electricity
costs.
What is the Weighted Average System Price for electricity?
Customers with a smart meter or conventional meter pay a fixed rate for
electricity based on the load shape of Hydro One Networks.
What is the current spot market rate for electricity?
The spot market is a fluctuating market rate. To find the current spot
market rate, please visit the IESO's website at www.ieso.com
or call the IESO at 1-888-448-7777.
I have a smart meter. What spot market price will I pay?
Customers with a smart meter will pay the Weighted Average System Price
for electricity. For more information on how Ontario's wholesale market
works, visit the IESO website at www.ieso.com.
I do not want to pay the Weighted Average System Price for electricity.
What do I need to do to be eligible for the Hourly Ontario Energy Price?
You will need to have an interval meter installed. Customers who are below
the 1,000 kW threshold shall submit a written request to us and will need
to pay the difference between the cost of a standard meter installation
and the cost of the interval meter installation, including the cost of
equipment, labour and telecommunications.
What are the advantages of having an interval meter?
You will be able to access your hourly load profile and better manage
your electricity costs. Customers with an interval meter will be billed
the Hourly Ontario Energy Price.
I signed up with a retailer since I thought my RPP eligibility would
end as of April 1, 2008. Can I get out of my contract now that the government
has extended the RPP eligibility?
You have a ten day cooling off period to cancel your contract without
paying any penalty. If you signed your contract more than ten days ago,
you should read the terms and conditions of your contract to see if there
is a cancellation fee. You should call your retailer to discuss.
What is the penalty for canceling my contract?
You'll have to read the terms and conditions of your contract. Please
call your retailer to discuss.
What is the benefit of signing a contract with an electricity retailer?
Customers benefit from the security of knowing exactly what their electricity
will cost them per kWh, without having to worry about the ups and downs
of the spot market.
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