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When you pay your bill, what are you paying for? 

 

Generating and delivering electricity across Ontario requires various moving parts, coordination from many different organizations, and long-term planning to make sure electricity is there for you at the flick of a switch, today and tomorrow. 

To understand what fees we charge to power your homes, and what fees we collect on behalf of other parties – such as the Ontario Energy Board and the Independent Electricity Systems Operator – see below.
 

infographic: Explaining your Hydro One Bill, where Delivery charges make up only 35.1 cents out of every dollar on your bill ​​​

Delivery: It is what we do

Delivery is our part of the bill and those delivery rates are set by the Ontario Energy Board (OEB). The OEB’s role is to regulate the electricity sector. In order to determine rates, Hydro One presents a case to the OEB with highly detailed plans for a set period of time. These plans include investments we need to make to keep the system reliable, work we plan to accomplish in the coming years, and the cost of operating our business. The OEB reviews our plans and makes a decision that balances the need to invest in the system against the need to control costs, balancing the strength of the system with consumer protection. 

Electricity

The cost of the electricity you use to power your home. Most Ontario consumers pay time-of-use (TOU) prices. TOU prices are set by the Ontario Energy Board (OEB) once a year on November 1st based on how much they expect it to cost to supply electricity to all households and small businesses in Ontario over the course of a year. To learn more about TOU prices, visit the Ontario Energy Board.

According to the OEB, roughly one in 10 Ontario ele​​ctricity customers are still billed according to tiered prices. This is typically because those customers live in an area with poor communications infrastructure where smart meters cannot communicate their hourly data reliably. Tiered price consumers can use a certain amount of electricity each month at a lower price. When you pass that threshold, the rate increases for additional electricity. Tiers are different for home and business customers. These tiers are defined by the OEB here.

The Ultra-Low Overnight (ULO) price plan was introduced in 2023, and is designed for owners of electric vehicles or for those customers who use most of their electricity overnight. For more information on choosing the best price plan for you, visit the OEB's website.

Prices are designed to recover the payments made to the electricity generators that produce the power (including market costs and the Global Adjustment). Utilities are not allowed to make a profit on the electricity they buy and deliver to their customers.

The Global Adjustment (GA) is included in the electricity cost on your bill if you participate in the regulated price plans (or as a separate line item if you are a market participant) and covers the cost for providing both adequate generating capacity and conservation programs for Ontario. 

The GA is calculated based on the difference between the Hourly Ontario Electricity Price (HOEP) and:

  • Ontario Power Generation’s regulated nuclear and hydro generation

  • IESO contracts with generators and suppliers of conservation programs

  • Contracted rates administered by the Ontario Electricity Financial Corporation paid to existing generators.
     

The Global Adjustment varies from month to month, responding to changes in both the Hourly Ontario Electricity Price (HOEP) and contract terms.

To learn more about Global Adjustment components and costs, visit the IESO's website here.

 

REGULATORY

There are a number of regulatory fees we collect that are set or approved by the OEB:

  • Rural and Remote Electricity Rate Protection charge: This charge is collected by the IESO to pay certain electricity distributors who provide electricity service in rural and remote areas. It helps to reduce the bills for consumers in areas that are expensive to reach.

  • IESO Administration Fee: The IESO charges an administrative fee to manage the high voltage power system and operate the wholesale electricity market in Ontario.

  • Renewable Connections: Some of the costs incurred by a utility to connect renewable generation facilities (e.g. solar, wind) can be recovered from consumers throughout the province.
     

ONTARIO ELECTRICITY REBATE

The Government of Ontario introduced the Ontario Electricity rebate in 2019. It’s shown at the bottom of bills as a pre-tax credit. The government has decreased the amount of the rebate to 13.1% (from 19.3%), effective November 1, 2024.

Residential, se​asonal, and small business customers are automatically eligible for the rebate, as well as any customer who is using less than 250,000 kWh a year. Registered farming businesses and licensed long-term care homes (as long as they don't share an account with a hospital) are also eligible to receive the rebate.

The rebate is calculated on the base amount of the bill prior to applying HST. The base amount includes the Electricity charge, Delivery charge, and Regulatory Charges. It excludes any other charges that may appear on bills such as late payment charges or disconnection charges. If your first bill issued after November 1, 2024 includes any usage in September and October, the rebate will be pro-rated based on the number of days in September and October at 19.30% and the number of days on and after November​ 1 at 13.10%.


TAXES

We collect the federal portion of the HST on electricity bills. As of November 1, 2019, the Government of Ontario introduced the Ontario Electricity Rebate, which is a rebate on electricity costs for residential, farm and many small business customers.​