Electricity Pricing
The commodity price for electricity in Ontario is regulated by the OEB and set out in its regulated price plan. Low-volume
users, such as residential consumers and small business customers are eligible under the plan. The plan includes
a two-tiered electricity pricing model based on specific consumption thresholds.
The price threshold for residential consumers is 600 kWh per month during the summer season (May 1 to October
31) and 1,000 kWh per month during the winter season (November 1 to April 30). The higher winter threshold for
the lower commodity price was set to give consumers with electric heating access to more hours of electricity at
the lower price in the winter. [Source: OEB
Web site]
The current commodity price paid for residential and small commercial customers is set out in the chart below:
Summer
(May 1-2008 to Oct 31-2008) |
Up to 600 kWh |
Up to 750 kWh |
5.0 |
More than 600 kWh |
More than 750 kWh |
5.9 |
Winter
(Nov 1-2008 to April 30-2009) |
Up to 1,000 kWh |
Up to 750 kWh |
5.6 |
More than 1000 kWh |
More than 750 kWh |
6.5 |
Time-of-Use Pricing
The Ontario Energy Board (OEB) has established special Time-of-Use electricity prices to provide
an incentive for consumers to shift their consumption away from periods when total consumption is high (“on-peak”)
to periods when demand for electricity is lower (“mid” or “off-peak”). These rates are
based on pricing trends in the electricity wholesale market, and they fluctuate, as their name indicates, depending
on when, during the day, electricity is consumed.
Many Local Distribution Companies across Ontario are currently in the process of implementing Time-of-Use
pricing. As these utilities start to offer Time-of-Use rates, Enbridge Electric will introduce these prices to
its customers.