Electricity and Hydro

How Electricity Gets to You

Generation: Power plants produce electricity through spinning turbines in a magnetic field to generate electricity. Electricity is consumed as it is produced and therefore must reach areas of demand quickly.

Active Energy: Purchases energy in bulk and distributes to consumers at a guaranteed rate.

Transmission: Big power lines deliver large amounts of electricity at high voltage to the customer.

Distribution: The high voltage power is carried over distribution wires to your home providing you with electricity.

Time-of-Use Pricing

Time-of-Use pricing is determined by the OEB who review rates based on electricity pricing over previous months. From this review, they are able to forecast future electricity prices over the next year.

Time-of-Use prices are reflective of the cost to supply electricity throughout the day. When demand for electricity is low, less expensive energy sources are utilized. During high demand periods, more expensive electricity sources are needed, causing the price of energy to increase.

In summer, on-peak prices apply during the middle of the weekday (from 11am to 5pm). This time period reflects the increase in air conditioning use. In winter, on-peak prices apply in the morning (7 to 11am) and evening (5 to 7pm). This time period reflects the increase of demand for residential electricity. During weekends and holidays all hours of the day are off-peak.

Click here to view current prices

Deregulation

On May 1, 2002, residents and businesses were provided with a choice in who they wanted to use as their electricity supplier. This change allowed for an opening in the competitive market for energy and ended the monopoly that Ontario Hydro had over the retailing and generation of electricity in Ontario.

In Ontario, the natural gas industry is deregulated, which allows for you to choose who you would like to purchase natural gas, electricity and home services from. Your options for purchasing natural gas and electricity are to use either; Enbridge, at a rate regulated by the Ontario Energy Board (OEB) or an independent supplier, called a gas broker or marketer, at a price that is not regulated.

At the moment, not all parts of the market are deregulated. While generation and the supply of electricity are open to competition for low volume consumers, transmission and distribution remain to be regulated functions.

Benefits of Deregulation

• Protecting consumers and offering more choice
  
  
• Ensuring a strong business climate with a reliable supply
  
  
• Protecting our environment
  
  
• Encouraging new ways of doing business and supporting the search for alternative sources of power (Source: http://www.energy.gov.on.ca News Release 24 October 2001)