Hydro One charges customers for the cost of electricity and collects payment on behalf of the organizations that work together to ensure the safe and reliable operation of Ontario’s electricity system.

As a residential customer, the charges on your bill fall under five categories: electricity, delivery, regulatory costs, taxes, and common charges.

Electricity Costs

Electricity costs are set by the Ontario Energy Board (OEB) for most residential customers. This portion of your bill covers the costs of generating the electricity we deliver to your home.

Delivery Costs

We deliver your electricity but we do not generate it. Our costs capture what it takes for us to deliver electricity to your homes safely and reliably. These costs include keeping the system safe and reliable, restoring power, transmitting electricity and providing fast and flexible customer service.

Explaining the bill – What your delivery charges pay for

Distribution Rate Protection

The Government of Ontario set up the Distribution Rate Protection (DRP) program in 2017 for residential customers who live in areas of the province with higher distribution costs. This program is funded through provincial revenues and ensures rural distribution rates are comparable to urban rates.

Year-round residential customers with a medium or low density rate class* automatically receive this subsidy that sets a threshold amount on what they pay for base distribution charges. Base distribution charges are made up of the monthly service charge and the distribution volume charge that are included in the Delivery line item.

The Ontario Energy Board increased the threshold amount from $36.86 to $38.08 per month to account for 3.3% inflation, effective July 1, 2022. As a result of this change, residential customers with a medium or low density rate class will pay $1.17 a month** more on their total bill.

*Your rate class is shown below the “Total amount you owe" on page 2 of your bill.

**The increase before the 11.7% Ontario Electricity Rebate and HST are applied is $1.22 a month ($38.08 - $36.86 = $1.22).

Regulatory Costs

Regulatory charges are set by the Ontario Energy Board (OEB). These charges include the cost of services required to operate the electricity system and run the wholesale market. The majority of these charges are variable and increase or decrease depending on the amount of your adjusted usage.


Charges on your electricity bill are subject to the Harmonized Sales Tax (HST). The HST portion of your bill falls under the authority of the federal government. However, the tax assessment on your bill includes an 11.7 per cent rebate. On November 1, 2019, the Government of Ontario introduced the Ontario Electricity Rebate, which is a rebate on electricity costs for residential, farm and many small business customers. Some First Nations and Métis communities qualify for a tax exemption. Click here to find out if you qualify.

Common Charges

At times we may also apply charges for additional services required by our customers. These common charges vary in cost depending on the need. Some of the more frequent charges include:

Customer Administration
​Account set up charge: ​$38.00
Easement charge for unregistered rights (web request): $25.00
Easement charge for unregistered rights (letter request): $92.51
Returned cheque charge (plus tax): $7.00

Non-Payment of Account
Late Payment - per month: 1.50%
Late Payment - per annum: 19.56%

Sentinel Lights Rental Rate - per month: $10.00
Sentinel Lights Pole Rental Rate – per month: $7.00

Sentinel Lights

Some of our customers are charged for the operation and maintenance of our Sentinel Light Rental Program. The supply, operation and service of our customers’ sentinel lights is only available to those already enrolled in the program.