UNDERSTANDING
YOUR ELECTRICITY BILL

ELECTRICITY

Most households and small businesses pay time-of-use electricity prices that appear on the “Electricity” line of the bill. As the regulator, the OEB sets electricity prices twice a year: May 1 and November 1. Prices are based on the estimated cost to supply electricity in the province for the next six months.

DELIVERY

This is made up of two separate costs. Both are approved by the OEB.

1. TRANSMISSION

Power flows from Ontario power plants and other sources, through transmission lines, to your local utility. Every home in Ontario pays the same rate to cover these costs.

2. DISTRIBUTION

A distribution company (also called “distributor” or “local utility”) delivers electricity to homes and businesses through a network of power lines within the communities it serves.

REGULATORY

This is made up of the costs to administer the wholesale electricity system and maintain the reliability of the provincial grid. It also includes costs for funding Ministry of Energy conservation, renewable and low-income energy programs.

GLOBAL ADJUSTMENT AND ENERGY CONTRACTS

If you buy electricity from your utility, the electricity price already includes your share of the “Global Adjustment.” If you sign a contract with an energy retailer, you pay the agreed-upon contract price (not time-of-use or tiered prices set by the OEB). You will also need to pay your share of the Global Adjustment. It will appear as a new, separate line on your utility bill.