The electricity (commodity) charge is just one component of your bill. There are other charges on your electricity bill that reflect the cost of delivering the electricity, ensuring reliability of the power system and managing your account.
These electricity charges are applicable to residential, small business and other designated consumers including municipalities, universities, hospitals, farmers and charitable organizations.
This covers the costs of delivering electricity from the generator to your local distribution company (LDC), and then to your home or business. It includes the costs to build and maintain the transmission and distribution lines, towers and equipment and operate the provincial and local electricity systems.
Some of these charges are fixed and do not change from month to month, while others are variable and increase or decrease depending on the amount of electricity that you use.
The Regulatory Charge comprises two components which are approved by the Ontario Energy Board (OEB) � the Wholesale Market Services Charge and the Standard Supply Service Charge.
Visit OEB website for more information about your electricity bill. If you have a contract with an energy retailer, see charges payable under a retail contract.
Wholesale Market Services Charge
This charge represents the cost to administer the wholesale electricity system, operate the electricity market, and maintain the reliability of the provincial grid. These costs include:
Physical Limitations and Losses: These are losses that occur as electricity flows across transmission lines. The IESO also collects other costs incurred in operating the power grid, such as when it must take actions to avoid overloads on the transmission system in cases of surges in demand.
Energy Reliability: There may be occasions when the balance between generation and demand is affected by an unanticipated event, such as equipment failure or a surge in consumption. The IESO purchases a certain level of spare capacity or reserve that is available on short notice to restore the balance.
IESO Administration Service: The IESO charges an administrative fee to manage the power system and operate the wholesale electricity market in Ontario. The rate is less than one-tenth of a cent per kilowatt-hour.
The IESO has reduced its administrative service charge by approximately 16 per cent since the electricity marketplace opened in 2002.
OPA Administration Fee: This fee pays for the administration costs of the Ontario Power Authority. The OPA's mandate includes planning for generation, demand management, conservation and transmission in Ontario. This fee does not include the costs payable under contracts for generation supply or for delivery of conservation and demand management programs entered into by the OPA.
Rural and Remote Electricity Rate Protection: This charge is used to partly offset the higher cost of providing electricity in rural and remote areas. The Rural and Remote Electricity Rate remained unchanged at 0.12�/kWh effective Jan. 1, 2013.
Renewable Connections: Some of the costs incurred by a utility to connect renewable generation facilities can be recovered from consumers throughout the province. This cost recovery is subject to OEB approval.
Standard Supply Service Charge
This charge is designed to cover a portion of an LDC's administrative costs to provide electricity to customers who buy their electricity from them, instead of a licensed electricity retailer. These rates are set by the OEB and are the same for all LDCs across the province.
Debt Retirement Charge
This charge of 0.7 cents per kWh has been set by the Ontario Ministry of Finance to pay down the residual stranded debt of the former Ontario Hydro.