Understand Your Delivery Rates
A delivery rate is the price you pay to have your electricity delivered to your home. It covers the cost of maintenance, upkeep, and all the little things that go into making sure you have the energy you need, when you need it.
Hydro One includes the cost of delivering electricity to customer’s properties on their bill under the Delivery Charge. A portion of the delivery charge is calculated at a fixed amount. The rest of the charges increase or decrease depending on the amount of electricity you use. For an average medium density residential customer who uses 750 kWh a month the Delivery Charge represent approximately 37% of the total bill. Hydro One owns and is responsible for this portion of the bill.
Residential and Seasonal customers pay different delivery rates. Select which category your property qualifies as to learn more about your specific delivery rates:
What Do Your Delivery Charges Pay For?
We deliver your electricity but don’t generate it. The infographic below shows how the money is spent:
How Do We Deliver Electricity?
For something that’s invisible, it takes a massive amount of infrastructure to deliver electricity to your homes and businesses. In fact, Hydro One owns and manages more than $20 billion in equipment just to make sure every time you flip the light switch the room lights up.
Electricity is created by harnessing other power sources with windmills, nuclear power plants, hydro-electric dams, natural gas or burning coal across the province. It then travels about 300,000 kilometers an hour across transmission towers, through transformer stations, across feeder lines to distribution stations, to power lines, through transformers, through your meter and into your home.
We deliver your electricity through our transmission and distribution systems safely and reliably but don’t generate the electricity.
How Delivery Charges Are Calculated?
A portion of the delivery charge is calculated at a fixed amount. The rest of the charges increase or decrease depending on the amount of electricity you use, giving you another way to control your electricity costs. The Delivery line on your bill is made up of the following charges:
In addition, an adjustment for line losses and a smart meter entity charge are also included in the Delivery line on your bill. The smart meter entity charge of $0.79 per month is only collected from residential and general service energy-billed customers. We collect this charge on behalf of the IESO. The charge will be in effect until October 31, 2018.
The Ontario Energy Board directed all utilities to move to fixed distribution rates for residential customers starting in 2016. Learn more.
Why Do I Have To Pay for Electricity Lost On It's Journey from
Generation to Me?When electricity is transmitted over long distances and passes through wires and transformers, it is normal for a small amount of power to be used or lost as heat. Electricity line losses are an unavoidable part of the electricity distribution business. For example, if we deliver 1,000 kWh to you, we must purchase a small amount more than what you use. To determine the amount of electricity we need to buy for you, we use a calculation called an "adjustment factor."