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Your electricity bill is made up of four main components: commodity charges (electricity and Global Adjustment), delivery charges, regulatory charges and HST. Hydro One manages the delivery portion; the cost to bring safe and reliable electricity to growing businesses across Ontario. Learn more about each component on your bill and how it’s calculated.
Review helpful details on units of measurement, rate classification and interval metering to better understand the interactive bill example.
Click on the highlighted numbers in the example below for details.
The total metered and loss-adjusted consumption during the billing period.
The total loss factor (TLF) adjusts your electricity usage to account for the percentage of electricity lost as it travels through the lines to your business. For example, a general service demand service has a TLF of 6.1%.
The highest amount of electricity consumed within one clock hour during the billing period measured in true power (kW) and apparent power (kVA).
Power Factor (PF) measures how efficiently a facility uses electricity, calculated by comparing the energy used for actual work (true power, kW) to the total energy drawn (apparent power, kVA). A PF of less than 90% may result in power factor correction.
The standard method for calculating Electricity charges is based on your hourly, loss-adjusted consumption multiplied by the Ontario Electricity Market Price (OEMP) set by the Independent Electricity System Operator (IESO). Customers may also choose alternative pricing options under the Regulated Price Plans*.
*Subject to eligibility requirements
All electricity consumers pay a share of the Global Adjustment (GA), either as a separate line item on their bill (Class B or Class A methodology) or bundled within their Regulated Price Plan (RPP).
Delivery charges include fixed and variable components approved annually by the Ontario Energy Board (OEB), with variable charges based on your peak demand.
Regulatory charges, approved by the OEB, include fixed and variable components, with the variable portion based on your total adjusted consumption.
The Ontario Electricity Rebate (OER) is a province-wide percentage reduction, set by the Ministry of Energy, to the subtotal of eligible customers’ electricity bills under O. Reg. 363/16.
Large business energy users are billed for electricity based on the Ontario Electricity Market Price (OEMP), the wholesale price that reflects real market conditions.
As of May 1, 2025, the OEMP replaced the previous Hourly Ontario Energy Price (HOEP) as part of the Independent Electricity System Operator’s (IESO) Market Renewal Program.
While most commercial and industrial customers pay the Ontario Electricity Market Price (OEMP), certain types of businesses may also qualify for the Regulated Price Plan (RPP):
Eligible business types:
Eligibility criteria:
Eligibility is set by Ontario Regulation 95/05 under the Ontario Energy Board Act, 1998 . Businesses may qualify if they:
I. a dwelling II. a property as defined in the Condominium Act, 1998 III. a residential complex as defined in the Residential Tenancies Act, 2006 , or IV. a property that includes one or more dwellings and that is owned or leased by a co-operative as defined in the Co-operative Corporations Act V. carries on a business that is a farming business for the purposes of the Farm Registration and Farm Organizations Funding Act, 1993 , and holds a valid registration number assigned under that Act or the consumer’s obligation to file a farming business registration form was waived pursuant to an order made under subsection 22 (6) of that Act
Pricing options for eligible customers:
Global Adjustment (GA) is a charge collected by the Independent Electricity System Operator (IESO) and covers costs associated with Ontario’s electricity system, including contracts with power generators and conservation programs.
The GA is designed to reflect the difference between the wholesale market price for electricity and the rates required to collect sufficient revenues to fund the above initiatives.
All electricity consumers pay a share of the GA, either bundled within their Regulated Price Plan (RPP) or as a separate line item on their bill. Non-RPP customers are billed according to either the Class B or Class A methodology.
The delivery charge covers the cost of bringing electricity from the high-voltage transmission grid to your business and is comprised of multiple sub-components which differ depending on rate class.
Delivery rates are approved by the Ontario Energy Board (OEB).
Service charge
A fixed charge to cover the costs of meter reading, billing, customer service, account maintenance and general utility operations.
Distribution volumetric charge
Covers the cost of delivering electricity through the Hydro One distribution system, including maintenance expenses and capital investments for new projects.
Retail transmission rates
Covers the cost of transmitting electricity through the transmission system.
Meter charge
Applies per meter owned by Hydro One on behalf of the customer. Customers who own their own meter(s) are not required to pay this charge.
Local transformation charge
Applies per transformer owned by Hydro One on behalf of the customer. Customers who own their own transformer(s) are not required to pay this charge.
Facility charge
Covers the cost of delivering electricity through the Hydro One distribution system. The applicable charge(s) vary depending on your connection type - for example, common, specific, high-voltage or low-voltage lines.
Covers the cost of delivering electricity through the transmission system. The applicable charge(s) vary depending on your connection type.
As part of regulatory requirements, Hydro One tracks differences between forecasted and actual costs through variance accounts. When these accounts reach a significant balance, we’re required to adjust for the difference by crediting or debiting customers through a temporary rate rider.
Power Factor (PF) measures how efficiently your facility uses electricity. It compares working power (kW) to apparent power (kVA). The closer your PF is to 100%, the more efficiently you're using energy.
Formula: Power Factor = kW ÷ kVA
A lower Power Factor means your equipment draws more current than necessary, leading to higher losses which may negatively impact your bill.
90 kW ÷ 100 kVA = 90% Power Factor
Regulatory charges are mandated by the Ontario Energy Board (OEB) and apply to all electricity customers in Ontario. These charges are collected on behalf of the Independent Electricity System Operator (IESO) and cover the cost of services required to operate the electricity system and run the wholesale electricity market.
The Wholesale Market Service Charge covers the cost to maintain the wholesale electricity market and the reliability of the grid. Based on loss-adjusted kWh consumption.
The Rural or Remote Rate Protection Charge covers the increased cost for distributors to provide power to low density customers, keeping prices equitable across the province. Based on loss-adjusted kWh consumption.
The Standard Supply Service Charge covers administrative costs for managing the electricity supply process. Fixed monthly fee.
The Ontario Electricity Rebate (OER) provides eligible customers with a 23.5% reduction on the amount of their electricity bill before HST, effective November 1, 2025.
Eligibility is set by Ontario Regulation 363/16 under the Ontario Rebate for Electricity Consumers Act, 2016 .
Commercial customers automatically eligible:
Commercial customers requiring a declaration form must:
To confirm if you’re already receiving the OER, it’s listed below the HST section on your electricity invoice. If you believe you should be receiving OER and don’t see it on your bill, please contact us at CICR@HydroOne.com .
The following items explain the units used to measure electricity and how they relate to the charges on your bill.
Fixed charges
The monthly fee covering administrative costs such as meter reading, customer service and maintenance.
Consumption (kWh) (See section 1 on bill example)
The total amount of electricity your business uses in a billing period. This can be billed on metered or adjusted for loss consumption.
Peak demand (kW) (See section 3 on bill example)
The highest level of electricity used during any one-hour period in your billing cycle. This value impacts your demand charges and can be billed on metered or adjusted for loss peak demand.
This image highlights how consumption accumulates over the billing period, while peak demand represents the one-hour period with the highest usage.
Apparent Power (kVA) (See section 3 on bill example)
The total amount of power drawn to the service. If the ratio of kVA to kW is < 90%, billing is based on kVA instead of kW. When an account is billed on kVA, it’s considered ‘power factor’ corrected. This applies to components under the Delivery section of your bill - either the distribution volumetric charge (GSD) or the facility charge (ST) as well as rate riders for variance accounts.
The example below illustrates a typical general service demand account and shows how the units of measurement are applied to each line item for a service with a monthly peak demand of 100 kW.
*The above table uses 2026 rates and arbitrary values for OEMP, GA, consumption, and demand
Your electricity rate is based on your business’s location and average monthly peak demand; either forecasted or measured.
See the table below to better understand your specific rate class, found on page two of your bill beside "Your Electricity Charges."
*To be sub transmission, the service must meet all the connectivity requirements below:
When electricity travels through the grid, a small portion is lost as heat or resistance. The total loss factor (TLF) adjusts for that energy, so your bill accurately reflects your share of system use and varies based on rate classification.
View current rate schedules
Interval metering records electricity usage at set times (every 15 minutes or hourly), rather than only providing a cumulative total over the billing period.
Hydro One’s Interval Data Portal allows you to easily view hourly usage and download detailed reports on how and when energy is consumed.
To access the portal, log in or register to myAccount, click on the “My Energy Usage” button and follow the registration prompts. For assistance, please email CICR@HydroOne.com or call 1-866-922-2466.
How it works
Benefits
Cost savings: By understanding usage habits, you can shift consumption to hours when rates are lower
Transparency: Tracking your electricity usage more precisely allows you to align costs with your operations
Demand management: These insights help you reduce demand charges through peak optimization
Load factor shows how consistently your facility uses electricity compared to its peak demand. A higher load factor means you’re using power more steadily, rather than having sharp energy peaks.
Monthly load factor =
If your facility uses 54,000 kWh in a 30-day period (720 hours) and your peak demand is 100 kW:
Load factor = 54,000 ÷ (100 × 720) = 75%
Easily pay your bill, change your preferences and get high usage and outage alerts when registering for myAccount.
If you're planning a new or upgraded service ≥50 kW, complete our online form and we'll estimate your monthly electricity costs.
Your Commercial & Industrial Customer Relations (CICR) team is here to help.
