Delivery: It is what we do
Delivery is our part of the bill and those delivery rates are set by the Ontario Energy Board (OEB). The OEB’s role is to regulate the electricity sector. In order to determine rates, Hydro One presents a case to the OEB with highly detailed plans for a set period of time. These plans include investments we need to make to keep the system reliable, work we plan to accomplish in the coming years, and the cost of operating our business. The OEB reviews our plans and makes a decision that balances the need to invest in the system against the need to control costs, balancing the strength of the system with consumer protection.
The cost of the electricity you use to power your home. Most Ontario consumers pay time-of-use (TOU) prices. TOU prices are set by the Ontario Energy Board (OEB) twice a year on May 1st and November 1st based on how much they expect it to cost to supply electricity to all households and small businesses in Ontario over the course of a year. To learn more about TOU prices, visit the Ontario Energy Board.
According to the OEB, roughly one in 10 Ontario electricity customers are still billed according to tiered prices. This is typically because those customers live in an area with poor communications infrastructure where smart meters cannot communicate their hourly data reliably. Tiered price consumers can use a certain amount of electricity each month at a lower price. When you pass that threshold, the rate increases for additional electricity. Tiers are different for home and business customers. These tiers are defined by the OEB here.
Prices are designed to recover the payments made to the electricity generators that produce the power (including market costs and the Global Adjustment). Utilities are not allowed to make a profit on the electricity they buy and deliver to their customers.
The Global Adjustment (GA) is included in the electricity cost on your bill if you participate in the regulated price plans (or as a separate line item if you are a market participant) and covers the cost for providing both adequate generating capacity and conservation programs for Ontario.
The GA is calculated based on the difference between the Hourly Ontario Electricity Price (HOEP) and:
Ontario Power Generation’s regulated nuclear and hydro generation
IESO contracts with generators and suppliers of conservation programs
Contracted rates administered by the Ontario Electricity Financial Corporation paid to existing generators.
The Global Adjustment varies from month to month, responding to changes in both the Hourly Ontario Electricity Price (HOEP) and contract terms.
To learn more about Global Adjustment components and costs, visit the IESO's website here.
There are a number of regulatory fees we collect that are set or approved by the OEB:
Ontario Electricity Support Program (OESP) Charge: This charge is collected to pay for the costs of the OESP. The program provides eligible low-income customers with a monthly credit on their electricity bills.
Rural and Remote Electricity Rate Protection: This charge is collected by the IESO to pay certain electricity distributors who provide electricity service in rural and remote areas. It helps to reduce the bills for consumers in areas that are expensive to reach.
IESO Administration Fee: The IESO charges an administrative fee to manage the high voltage power system and operate the wholesale electricity market in Ontario.
OPA Administration Fee: This fee pays for administration costs related to planning for generation, demand management, conservation, and transmission in the province. This fee does not cover the contract payments made to generators or costs for the delivery of conservation and demand management programs
Renewable Connections: Some of the costs incurred by a utility to connect renewable generation facilities (e.g. solar, wind) can be recovered from consumers throughout the province.
We collect the federal portion of the HST on electricity bills. As of January 1, 2017, the provincial government initiated an 8 per cent rebate on electricity charges on customers’ bills. Electricity, Delivery and Regulatory Charges and the Debt Retirement Charge (if applicable) are reduced by the 8 per cent rebate. HST and any additional charges that may appear on the statements such as late payments, equipment rentals, or provision of other services are excluded. Residential customers, farms, and small businesses are eligible for the 8 per cent rebate.