Environment
Energy Pricing Information for Canadian Consumers
Electricity
Current Market Conditions
October-November 2006
There will continue to be longer-term, upward pressure on prices for consumers in both regulated and restructured or deregulated markets. These pricing impacts will be felt due to the cost of developing new generation and transmission facilities in order to replace ageing infrastructure and due to the increased use of renewable sources of generation (e.g., wind, solar, biomass). Over the last few years, higher natural gas prices have resulted in upward pressure on electricity prices in regions where a higher proportion of natural gas is used in electrical generation, although this pressure has eased over recent months due to a decline in natural gas prices. Similarly, high prices for oil and, in some cases, coal will continue to put upward pressure on electricity prices in regions where these fuels are used. See FAQs for more information on pricing.
Consumer prices or "rates" vary for several reasons:
- customer class (e.g., residential, commercial, industrial);
- amount of energy consumed in a given period (e.g., rates may vary based on customer consumption);
- type of electricity meter (e.g., some consumers have access to time-of-use meters that show lower charges for electricity during off-peak periods); and
- price of competing fuels, where large industrial customers have the capability to switch fuels.
Information on specific rates is available from local distribution companies or provincial utilities.
Peak electricity demand in Canada typically occurs during the winter months, although, at times, Ontario and Québec experience peak electricity demand in the summer months due to increased use of air conditioning units. Spring and fall tend to be shoulders seasons with lower demand, so Canadian electricity markets should have adequate supply to meet electricity demand requirements this fall.
| Alberta | Although the retail market for residential, farm, small and medium commercial consumers is open to competition, these consumers have the option to remain on a regulated rate option (RRO). Under the new RRO regulation, from 1 July 2006 to 30 June 2007, 80 percent of the electricity required for customers will be purchased under the current process (long-term hedges) and 20 percent will be based on the new RRO - one month (short-term) hedges - that better reflect current market rates. As a result, customer electricity rates will fluctuate on a monthly basis, as opposed to quarterly or yearly as previously. In subsequent years, the minimum short-term hedge requirement will increase by 20 percent until it reaches 100 percent in 2010. |
| B.C. | FortisBC applied for and received interim approval for a 5.9 percent rate increase effective 1 January 2006. The British Columbia Utilities Commission (BCUC) has granted a request by BC Hydro for a 4.65% rate increase effective July 1, 2006. The rate increase was approved on an interim basis. |
| Manitoba | Manitoba Public Utilities Board approved an increase of 2.5 percent for all rate classes effective 1 April 2005. |
| New Brunswick | In June 2006, the Board of Commissioners of Public Utilities (the Board) ordered that NB Power Distribution and Customer Service Corporation (DISCO) charge residential customers 9.2 cents per kW.h for the first 1 000 KW and 8.6 cents for subsequent electricity and that service charges would remain the same for these customers. The Board believes, based on its own analysis, that half of all homeowners will experience an increase of less than 10 percent. Other classes of customers may experience increases or decreases in electricity rates, depending on the customer class. These rates are effective 1 August 2006. |
| Newfoundland and Labrador | Newfoundland and Labrador Hydro announced that electricity rates will increase on 1 July 2006 by between 5 and 6 percent as current fuel prices are adjusted under the utility's annual rate stabilization plan. |
| Nova Scotia | In March 2006, the Nova Scotia Utility and Review Board approved an 8.9 percent increase in domestic residential power rates, effective March 10, 2006. |
| Nunavut | The high price of diesel fuel led to a rate increase of 15 percent for residential customers effective 1 April 2005. |
| Ontario | Effective 1 May 2006, residential and small business customers pay 5.8 cents for electricity use up to a certain threshold each month, and 6.7 cents per kW.h for any additional energy. These prices will remain in effect until 30 April 2007. The price threshold is 1 000 kW.h per month during a winter season (1 November to 30 April) and 600 kW.h per month during a summer season (1 May to 31 October). Residential consumers with smart meters will pay a three part variable rate base on peak, off-peak and shoulder prices. |
| Prince Edward Island | In June 2006, the Island Regulatory and Appeals Commission approved a 3.35 percent increase in Maritime Electric's basic rates, effective July 1, 2006. |
| Québec | In February 2006, the Régie de l'énergie approved a 5.3 percent increase in electricity rates, effective 1 April 2006. |
| Saskatchewan | The Saskatchewan Rate Review Panel has recommended approval of SaskPower's proposed 4.9 percent average system-wide increase effective 1 January 2006. |
| Note: The Northwest Territories and the Yukon have not had recent changes to their electricity rate structures. | |
For further electricity pricing data and information, please see our Helpful Links section. The following electricity sections are also available: How Markets Work, Canadian Industry and FAQs.
Introduction | Crude Oil | Natural Gas | NGLs | Electricity | Energy Efficiency
| Updated: 2006-10-11 | 
 |
Important Notices |