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Who We Are The Power System Demand & Price Conservation Electricity Pricing in Ontario

ELECTRICITY PRICING FOR BUSINESS AND INDUSTRY

The price businesses pay for electricity depends on how much electricity they use and how their electricity use is tracked.

Medium and Large-Sized Business
Businesses that have a demand of more than 50 kilowatts (kW) (roughly 250,000 kilowatt hours (kWh) of electricity a year, spending roughly $2,000 a month) pay the wholesale price through their local utility. With wholesale pricing, these businesses have three options:

  • If a business has an interval meter, it pays the Hourly Ontario Energy Price.
  • If it doesn't have an interval meter, it pays a weighted wholesale price based on the consumption pattern of its local distribution company (LDC).
  • These consumers may also choose to move to a fixed-price contract offered by a retailer.

Wholesale customers are also subject to the monthly Global Adjustment.

Learn more about how the commodity cost and other electricity charges are determined for these customers.

Market Participants – Large Industrial Consumers
Some large businesses participate directly in the IESO-administered market. These companies are either connected directly to the transmission grid and buy electricity through the market; or they are looking to take advantage of the IESO's operating reserve market, which provides payments for providing extra supply to the system.

Small Business
Businesses that have a demand of less than 50 kW or use less than 250,000 kWh a year pay the same rate as residential consumers – the Regulated Price Plan (RPP). Under the RPP, small businesses pay a tiered price for electricity, unless time-of-use rates are in effect in their area.  Small businesses also have the option of signing a contract with a retailer.

Other Electricity Charges
The commodity or electricity cost is just one component of your bill. Learn more about other electricity charges for residential and small business consumers.

 

 

RELATED INFORMATION

In Ontario, electricity prices flow from the wholesale price. Most medium and large businesses in Ontario pay the wholesale price which changes hourly. For residential consumers and small business, the prices under the Regulated Price Plan are reviewed by the Ontario Energy Board every six months and are adjusted according to trends in the market.