Electricity
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.
Learn More
Delivery
We deliver your electricity, but we do not generate or produce electricity. Delivery charges covers our costs to
deliver
electricity to your home safely and reliably. These costs include keeping the system safe and
reliable, restoring power, transmitting and distributing electricity and providing fast and
flexible
customer service. The OEB sets our delivery rates.
Delivery charges include:
- Monthly service charge – A fixed charge for costs related to meter reading, billing, account
maintenance, and customer service.
- Distribution volume charge – A charge that varies depending on how much electricity you use.
This covers the costs of building and maintaining the distribution system (low voltage),
including overhead and underground power lines, poles and transformer stations.
- Transmission charges – Charges that vary depending on how much electricity you use. This
covers the cost to operate and maintain the high voltage transmission system.
- An adjustment for line losses – It’s normal for a small amount of power to be lost as it
travels over power lines to your home. We use an OEB-approved adjustment factor to account
for line losses.
Learn about Delivery Rates
Government subsidies applied to Delivery charges
1) Distribution Rate Protection – for residential customers with a medium or low density rate
class
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 (your rate class is
shown
below the “Total amount you owe” on page 2 of your bill) 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 Delivery charges.
The Ontario Energy Board increased the threshold amount from $38.08 to $39.49 per month to
account
for 3.7% inflation, effective July 1, 2023.
2) Rural or Remote Rate Protection – for residential customers with a low density rate class
This program provides financial assistance to eligible customers located in rural or remote areas
where the costs of providing electricity service to these customers greatly exceeds the costs of
providing electricity to customers located elsewhere in the province of Ontario. Year-round
residential customers with a low density rate class automatically receive a monthly credit of
$60.50
that is deducted from the monthly service charge.
Regulatory Charges
Regulatory Charges are set by the 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.
HST
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 a 19.3 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.
Find out if you qualify
