This line of the bill shows the price you are paying for the electricity you used during the billing period. Low-volume consumers (households and small businesses) who buy their electricity from their utility pay either tiered or time-of-use (TOU) prices. These prices, referred to as Regulated Price Plan or RPP prices, are set by the OEB based on a forecast of how much it will cost to supply electricity to RPP consumers over the next 12 months. RPP prices are designed so that the price RPP consumers pay for electricity recovers the payments made to electricity generators for the electricity they produce (including both market costs and the Global Adjustment). Twice a year, the OEB reviews the forecast and, if necessary, adjusts prices accordingly (May 1st and Nov 1st).
Your utility buys the electricity it supplies to you from the wholesale market. The RPP prices you pay allow your utility to recover that supply cost. Utilities are not permitted to make a profit on the sale of electricity to consumers.
This line of the bill shows the cost of delivering electricity from generating stations across the Province to your home or business via the high voltage (transmission) and low voltage (distribution) electricity systems.
All the charges on the Delivery line of the bill are approved by the OEB. Some of the charges are fixed at a set amount per month. Others are variable and increase or decrease depending on the amount of electricity you have used. Delivery charges include:
Line Loss Adjustment
When electricity is delivered over a power line, it is normal for a small amount of power to be consumed, or lost, as heat. In calculating your electricity costs for the billing period, your utility adjusts your consumption to account for those losses, using an adjustment factor that is approved by the OEB.
1. The Wholesale Market Service Charge covers the cost of services provided by the Independent Electricity System Operator (IESO) to operate the wholesale electricity market and maintain the reliability of the high voltage power grid. It also covers certain costs incurred by local utilities to connect renewable generation. Although the Wholesale Market Service Charge is set by the OEB to allow these costs to be passed on to consumers, the OEB does not set or approve all of the costs that are recovered through that charge. The description below notes which charges are approved by the OEB.
Included within this charge:
Fees set or approved by the OEB:
2. The Standard Supply Service Charge: Customers who purchase electricity directly from their local utility, rather than a retailer, pay an administrative fee to their utility to cover these costs. This charge is the same for all utilities in the province and is set by the OEB.
The Debt Retirement Charge was removed for certain residential consumption after Dec. 31, 2015. Learn more at Ontario.ca/DRC.
If you are a customer of an electricity utility and in a lower-income home, you may qualify for a reduction on your electricity bill. The OESP will reduce the cost of your household electricity by applying a monthly credit directly to your bill. The credit amount will depend on how many people live in your home and your combined household income. Visit OntarioElectricitySupport.ca for more information.
The price you pay for electricity is set out in your contract. You will also have to pay your share of the Global Adjustment for each month.
If you purchase electricity from a retailer, you will see a separate line item on your bill for the "Global Adjustment". The Global Adjustment accounts for differences between the market price of electricity and the regulated or contract prices paid to generators for the electricity they produce. These include nuclear, gas-fired and renewable generators (like wind farms) that have contracts with the Ontario Power Authority (OPA) and generators that have contracts with the Ontario Electricity Financial Corporation (OEFC), as well as Ontario Power Generation's "baseload" generating stations that operate at or near capacity all the time to meet basic demand. The OEB does not set or approve the amounts paid by the OPA or OEFC to contracted generators, but it does set the amounts that are paid to Ontario Power Generation for electricity generated by its baseload facilities.
The Global Adjustment also includes the cost of OPA conservation and demand management programs. Those costs are not subject to OEB approval. Also covered by the Global Adjustment are any OEB-approved costs incurred by utilities to achieve their mandatory conservation and demand reduction targets.
The Global Adjustment is calculated monthly by the IESO. Because a large portion of the Global Adjustment is calculated as the difference between the market price and regulated or contracted generation prices, it can be either a credit or a charge to consumers depending on fluctuations in the market price. However, it has been a charge since 2006.
This is the price outlined in retail contracts, which usually have set rates over a given term.
Your power utility measures your electricity use in kilowatt hours, abbreviated as kWh. One kilowatt hour is the same thing as using 1,000 watts of electricity for one hour. So if you run 10 100-watt light bulbs for one hour, you’ve used 1 kWh of electricity.
You could burn a 60-watt bulb for nearly 17 hours to consume the same amount of energy.
Consider replacing that same 60-watt bulb with a 15-watt compact fluorescent light (CFL) bulb. The 15-watt CFL bulb produces roughly the same brightness but uses one-quarter the electricity. And it will take 67 hours to consume the same amount of electricity.