Ontarians have had the power to choose their electricity supplier since 2002. Find out more about what consumer choice means for the price of electricity in Ontario here.
How Your Electric Service Works in Ontario
Your electric service works in three main steps: generation, distribution and transmission, and consumption. In the past, all three steps of the electricity service were performed by one company (often called a vertically-integrated monopoly), but when the Ontario electricity market restructured in 2002, these functions were split amongst different companies. This means that you now have a choice of electricity supplier.
How Are Charges for Electricity Split?
The cost of your electricity can be split into two main types of charges: the cost of your electricity supply, and the cost of delivering it to your home.
Your local utility is responsible for delivering electricity to your home, regardless of who your supplier is. They are also your default supplier, should you decide not to purchase electricity from an alternate supplier. However, you may choose to purchase electricity from an alternate supplier, in which case the price you pay for the electricity that you consume may change. There should be no change or interruptions in your service, and in most cases, you will continue to receive a bill from your utility. When you switch to an alternate supplier the only things that will change are the price you pay for your electricity, and the name of your electricity supplier on the bill that you receive from your utility.