Understanding Your Ontario Electricity Bill

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In order to make an informed decision about your electricity, it helps to understand the different components of your utility bill. Energy supply makes up one part of your bill, but it is not the only component. Charges for energy transmission, distribution, and storage are also on your bill, along with the Global Adjustment (GA) and debt retirement charge. These amounts are regulated by the Ontario Energy Board (OEB).

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Electricity

Components of your bill

You will receive your electricity bill from your local utility, which is responsible for delivering your energy to you, regardless of whether or not you are on a contract with an energy marketer. Here is an example of what your utility bill might look like:

Your bill should contain the following information:

Account Number: (or "customer number"...) this is the number of your account. You will need to have this on hand when you contact your utility or energy supplier. It is important that the entire number as appears on your bill is to used pay it.

Meter Number: you can find your meter number on the face of your electricity meter

Service Address: the address of the site being charged for electricity use

Statement Date: the date when your bill was generated and/or mailed to you

Amount Due: the amount that you have to pay for your energy usage

Due Date: the date when you must pay your bill. Late payments are usually subject to a monthly 1.5% interest by utilities.

Billing Summary: a summary of what you owe, taking into account past payment history

Electricity Charges: here you will find a breakdown of the cost of the energy you used in the past month. Electricity charges are based on your consumption amount and the rate that you pay per kWh. If you are on TOU pricing you will see a breakdown of your consumption based on in which time periods you used electricity. If you are supplied by an energy marketer, you will likely be paying a flat rate. The Global Adjustment is already incorporated into the rates that you pay if you are supplied by your utility. If an energy marketer provides your supply, it will appear as a separate item on your bill under your electricity charges. You will also find the name and phone number of your energy supplier, whether it is your utility or an energy marketer.

Delivery Charges: these charges take into account the costs of delivering your electricity. They include both fixed and variable (based on your energy consumption amounts) charges, and are approved by the OEB. Delivery charges include:

  • Customer Service: a fixed charge for your utility to recover the costs associated with meter reading, billing, customer service and account maintenance, and general utility operations
  • Distribution: a variable (per kWh) charge that allows your utility to build and maintain its low-voltage distribution system
  • Transmission: a variable charge that goes towards the operation and maintenance of the high-voltage transmission systems that carry electricity from generating stations to your utility

Adjustment Factor: some energy is lost as it travels from the generating stations to your home. This is taken into account by the OEB-approved Adjustment Factor, which is multiplied by your consumption. The Adjustment Factor varies throughout the province depending on your utility within the range of 4 and 9%. If you are supplied by your utility this will appear under the Delivery charges. Until July 1 2015, the line loss Adjustment Factor will appear under your Electricity Charges if you are supplied by an energy marketer. You might also see it as "Adjusted Consumption".

Regulatory Charges: these are OEB-approved charges intended to cover the costs of operating the electricity wholesale market, the administration costs of the Ontario Power Authority (OPA), some of the costs for local utilities to connect to renewable generation, and a standard supply service charge. Most of these charges are based on how much energy you have used.

Debt Retirement Charge: this is the Ontario Ministry of Finance-approved charge intended to pay off the debts of the former Ontario Hydro. It is currently set to 0.7 cents/kWh.

HST: the total of your bill is subject to HST

Clean Energy Benefit: the Ontario Clean Energy Benefit is a 10% rebate off of the total cost of up to 3000kWh electricity used per month. It went into effect on January 1, 2011 and will continue to December 31, 2015.

How will my bill change if I choose an energy marketer for my supply?

Most of the time you will continue to receive your bill from your local utility, who will remain responsible for the delivery of your electricity. Most of your bill will remain unchanged; the main changes that you will see to your bill will appear under your electricity charges. These include the name and phone number of your energy supplier, which will appear above the rate that you pay for your electricity as set out in your contract, the Global Adjustment (which will figure as a separate item on your bill and will vary month-by-month), and the Loss Adjustment Factor.

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