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Buying electricity. Your choices.
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Buying Electricity on the Regulated Price Plan |
| The OEB - the agency that regulates our province's electricity and natural gas sectors - has created a Regulated Price Plan (RPP) for consumers that sets out prices per kWh that local electricity utilities charge for electricity use.
There are four key things you need to know about the Regulated Price Plan:
- The prices you pay for electricity are set by the OEB.
Actual market prices for electricity are volatile, fluctuating up and down every hour. To smooth this pricing, and to reduce the exposure for you and other consumers from such frequent fluctuations, the OEB created the Regulated Price Plan and sets prices that your utility charges you for the electricity that you use.
The current prices took effect November 1, 2007 and may be adjusted on May 1, 2008. Starting then and every six months after that, the OEB will adjust them as required. This is necessary because, over the long term, the prices you pay for electricity may not be the same as the actual cost of the power you use. If consumers have paid more or less than the actual cost, that difference will be blended into future prices set by the OEB. If you leave the RPP, you will need to settle your Regulated Price Plan account with your utility, since the price you've been paying may not reflect the actual cost of electricity up to that time.
- The prices you pay are based on a two-price structure.
Under the Regulated Price Plan, the OEB sets two prices for your electricity consumption: a lower price and a higher price. What you pay depends on how much electricity you use each month. You pay the lower price (currently 5.0 cents per kWh) up to a certain level of electricity used and a higher price (currently 5.9 cents per kWh) if you consume beyond that.
When does the higher price kick in? That point is called the price "threshold" which changes twice a year for residential consumers. The threshold for the summer season (May-Oct) threshold is 600 kWh per month and the winter season (Nov-Apr) is 1,000 kWh per month. This allows you to use more electricity at a lower price during the winter months when more electricity is typically needed for heating, light and indoor activities. For non-residential consumers, the price threshold is 750 kWh for all seasons.
| How Much Electricity Do You Use? |
| The average residential consumer in Ontario uses under 1,000 kWh of electricity per month. Do you know how much you consume? It’s easy to find out. Check the “Electricity” line of your electricity bill – it shows the amount of electricity you used at the lower price and, if applicable, at the higher price. |
- The Regulated Price Plan applies to your electricity use only.
Your bill each month contains a number of charges - Electricity, Delivery, Regulatory and Debt Retirement. The Regulated Price Plan only affects the "Electricity" line of your bill - the cost of electricity supplied to you that you actually use for heating, lighting, appliances and so on.
- The Regulated Price Plan covers almost all consumers.
This includes residential consumers, small businesses and other consumers designated by the Ontario government, such as municipalities, schools, universities and hospitals. It does not, however, apply to large commercial or industrial consumers who use over 250,000 kWh per year. You don't have to do anything to "sign up" for the Regulated Price Plan - unless you have chosen another option, you automatically purchase the electricity from your utility and are charged the regulated prices.
How the Regulated Price Plan Works
| Residential Consumers |
| Summer (May 1-08 – Oct 31-08) |
Up to 600 kWh |
To be determined |
| More than 600 kWh |
To be determined |
| Winter (Nov 1-08 – April 30-09) |
Up to 1,000 kWh |
5.0 cents |
| More than 1,000 kWh |
5.9 cents |
| Non-Residential Consumers |
| All seasons |
Up to 750 kWh |
5.0 cents* |
| More than 750 kWh |
5.7 cents* |
| *Price may be adjusted November 1, 2008. |
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| You Have Other Options for Buying Electricity |
| You can leave the Regulated Price Plan by choosing other options for purchasing electricity:
- You can enter into a contract with an electricity retailer. In doing so, you will pay prices offered in the retailer's contract. For a description of the Code of Conduct for electricity retailers, please click here.
- If you have an interval meter, you can pay for electricity based on actual wholesale market prices.
The best choice will depend on your individual needs and preferences. If you leave the Regulated Price Plan, you will need to settle your Regulated Price Plan account with your utility, since the stable price you've been paying may not reflect the cost of electricity up to that time. You will receive or pay your share of the difference (called the "RPP Settlement") between the amount that all Regulated Price Plan consumers have paid for electricity and the amount that has been paid to electricity generators. This will be calculated by your utility according to a formula established by the OEB.
| Quick Facts about the Regulated Price Plan |
- You pay a price per kWh that is set by the OEB and remains stable and predictable for a certain period of time.
- The difference between the stable price you pay and the price paid to generators will be rolled into future Regulated Price Plan prices, so that it is smoothed out over a longer term and there are no lump sum adjustments that appear on your bill. If you leave the Regulated Price Plan however, you will settle this difference with your local utility.
- There is a two-price structure – a lower and higher price charged depending on the amount of electricity you use.
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Want to know where you can buy electricity in the new market? We have provided a list of retailers for you convenience.
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Still have questions? Contact our Customer Service department at (519)756-1360 or use the form provided on this Web site.
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For more information about the electricity market, please visit our Links page for a list of government and private sector web sites.
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