Electricity FAQs
Questions:
- Does the government provide any grants or financing for projects that reduce household energy consumption and move towards conservation?
- Can my utility shut off my gas or electricity during cold months?
- How is electricity charged under the new rates when there are two households sharing one electricity meter?
- Could you provide me with a list of the privately owned electricity suppliers in Ontario?
- What are line loss charges and why do they appear on my electricity bill?
- What are 'smart meters' and what is the government's plan for them?
- What is the Debt Retirement Charge (DRC) and why do I have to pay it?
- How much is the debt and how long must we continue to pay the debt retirement charge (DRC)?
- Are there any special price considerations for people who heat their homes using electricity?
- Does the 5.0 cent/5.8 cent split rate billing that applies to residential customers also apply to business customers?
- Why did Ontario choose to proceed with the refurbishment of the Pickering nuclear station?
- What is being done about the waste from our nuclear plants?
- Why is the Ontario government shutting down coal-fired generators like Nanticoke?
- What is the government doing to support 'green power'?
- What incentives does the government provide for alternative energy?
Does the government provide any grants or financing for projects that reduce household energy consumption and move towards conservation?
The Government of Ontario currently offers rebates of the provincial retail sales tax (RST) on the purchase of residential solar, wind, micro-hydroelectric or geothermal energy systems, or on any expansions or upgrades to existing systems installed in residential premises until November 25, 2007. For detailed information or to claim the sales tax rebate, contact the nearest Ontario Ministry of Finance Tax Office listed under Taxes - Provincial (Retail) Sales Tax in the blue pages of your phone directory, or call the TAX FAX Service at 1-877-482-9329, or visit the Ministry of Finance website at www.trd.fin.gov.on.ca.
The Government of Canada has launched a grant program to encourage homeowners, particularly those who have older homes that are in need of energy efficiency upgrades, to retrofit their homes to make them more energy efficient and reduce greenhouse gas emissions that contribute to climate change. To be eligible for a grant, homeowners must have an EnerGuide for Houses evaluation and follow up on its recommendations. The house must achieve a minimum energy performance improvement. For more information, visit the Natural Resources Canada Office of Energy Efficiency website at www.oee.nrcan.gc.ca.
Last updated: 9 November, 2005
Can my utility shut off my gas or electricity during cold months?
Utilities may disconnect service for non-payment at any time of year. Utilities are required to provide notice of disconnection, according to the requirements of the Ontario Energy Board. Utilities use disconnection as a last resort and generally will work with a consumer to establish a mutually acceptable payment schedule. If you believe you may have difficulty paying your bill, advise your utility as soon as possible and attempt to make alternate payment arrangements.
The government has also created an energy emergency fund to assist low-income Ontarians - including social assistance recipients and people with fixed incomes - facing energy-related emergencies. The fund will help cover arrears and associated costs for electricity, as well as natural gas, oil and other forms of energy. This is a one-time program, except in exceptional circumstances, and the maximum amount of assistance per household is equivalent to two months' energy arrears, security deposit and reconnection fees, as required.
Consumers who require immediate assistance should contact their municipality to find out what existing programs are in place to address their needs. For further details, you can contact the Ministry of Community and Social Services toll free at 1-888-789-4199.
Last updated: 19 September, 2005
How is electricity charged under the new rates when there are two households sharing one electricity meter?
To ensure that you receive 750 kilowatt hours (kWh) at the lower price (5.0 cents) for each of your two units, you will need to advise your utility that you have two units sharing the same service address. Contact your utility for more details on their notification requirements as this may vary between utilities. These provisions apply only to residential complexes as defined in the Tenant Protection Act, condominiums and housing co-ops.
Last updated: 19 September, 2005
Could you provide me with a list of the privately owned electricity suppliers in Ontario?
The Ontario Energy Board maintains an up-to-date list of electricity generating companies, retailers and other market participants on their website. You can view this list on the Ontario Energy Board website.
Last updated: 19 September, 2005
What are line loss charges and why do they appear on my electricity bill?
When electricity is transported from the generator to the customer, not all of it reaches its destination, largely as a result of natural phenomena. However, since the lost energy has the same cost as the energy that is consumed by the customer, utilities have no choice but to charge for both the energy used and the energy lost.
Utilities use a 'loss factor' to determine how much electricity has been lost. This is normally calculated by measuring the amount of electricity delivered to the system over a given period and the amount delivered by the system to its customers over the same period. Once these two numbers are compared, it is possible to calculate how much electricity was lost in delivery and the loss factor that has to be applied to recover the costs of the purchase.
Charges relating to line losses are not new. Before utilities were required to provide a detailed breakdown of all the components of a customer's bill, the costs of line losses were hidden in the bundled bill. Loss factors are regulated and approved by the Ontario Energy Board and help ensure that customers pay the true cost of supplying them with electricity.
Last updated: 19 September, 2005
What are 'smart meters' and what is the government's plan for them?
Time-of-use and interval meters, commonly known as 'smart meters', allow electricity distributors to track how much electricity is used by a consumer and what time of day that electricity is used. When combined with flexible pricing, this allows customers to reduce their overall demand for electricity and to shift their consumption to off-peak times such as at night and on weekends.
Smart meters are part of the government's broader energy plan create a conservation culture, address rates and provide consumers with the tools they need to manage their energy consumption and costs. The government set targets to install smart meters in 800,000 households by 2007 and in all Ontario households by 2010. The Minister of Energy directed the Ontario Energy Board (OEB) to consult with stakeholders and develop an implementation plan to achieve the government's smart meter targets. The OEB has presented its proposal for smart meter implementation to the government. You can read the OEB's smart meter proposal on its website at www.oeb.gov.on.ca.
Details of the smart meter plan are currently under consideration. The government is carefully reviewing various approaches, including the OEB's recommendations, as it determines the best way to move forward to achieve its targets and ensure consumers are empowered to better manage their electricity use and save money.
Last updated: 27 February, 2006
What is the Debt Retirement Charge (DRC) and why do I have to pay it?
The Debt Retirement Charge (DRC) is intended to help pay down the legacy debt of the former Ontario Hydro. Although the debt was acquired in the past, the facilities that were financed by the debt are still in use and continue to supply electricity to customers today. For this reason, today's customers contribute to paying down the debt through the DRC. Since those who use more electricity benefit more from these facilities, it is appropriate that they pay a higher portion of the debt retirement cost than those who use less electricity.
Last updated: 19 September, 2005
How much is the debt and how long must we continue to pay the debt retirement charge (DRC)?
In the years prior to restructuring in 1999, Ontario Hydro had borrowed money to build new generation plants and expand transmission and distribution networks. The interest and principal on this debt was to be paid by the revenues earned from the sale of electricity. The total amount of the debt left by the former Ontario Hydro, including other liabilities, was $38.1 billion. Of that total, $17.2 billion was assigned to Ontario Hydro's successor companies - Hydro One and Ontario Power Generation (OPG). The remaining $20.9 billion was defined as 'stranded' debt. This amount was later reduced by $1.5 billion through the transfer of other assets.
Responsibility for managing the stranded debt was assigned to the Ontario Electricity Financial Corporation (OEFC). Part of the net income of OPG and Hydro One goes toward paying the debt, as do payments in lieu of taxes by OPG, Hydro One and local distribution companies. On April 1, 1999, the stranded debt amounted to just over $19.4 billion. According to the OEFC's report for the year ended March 31, 2004, the debt increased to almost $20.6 billion. This increase was largely a result of the almost $1 billion cost of the 4.3 cents per kilowatt hour fixed price for electricity introduced by the previous government. The new pricing structure, which better reflects the true cost of electricity, provides OPG with a regulated price for its nuclear and baseload hydro generation. This will provide customers with more stable prices and improve the financial viability of OPG.
The debt retirement charge (DRC), which produces approximately $1 billion annually in revenue, is intended to contribute to paying off the debt that was not assumed by Hydro One and OPG. This 'residual' stranded debt was estimated to be $7.8 billion. The DRC will end when the residual stranded debt is paid off, which the OEFC estimates will occur between 2012 and 2020. DRC revenue is included each year in the OEFC's annual report. If you would like to know more about the status of the debt, you may wish to visit the OEFC website at www.oefc.on.ca to read its latest annual report.
Last updated: 24 February, 2006
Are there any special price considerations for people who heat their homes using electricity?
The Government of Ontario is concerned about consumers with electric heating and recognizes that electricity prices may have a greater impact on them than on consumers with access to natural gas. The new electricity pricing structure, which came into effect on April 1, 2005, better reflects the true cost of electricity and recognizes the impact of electricity used for heating on consumers' bills.
Under the new pricing plan, residential consumers pay 5.0 cents per kilowatt hour (kWh) for the first 750 kWh used per month, and 5.8 cents per kWh over this threshold.
The price threshold for residential consumers will change twice a year, beginning in November 2005. The threshold will be 1,000 kWh per month during winter season (November 1 to April 30) and 600 kWh per month during summer season (May 1 to October 31). This means consumers will be able to use more hours of electricity at the lower price in the winter when many people need more electricity for light, indoor activities and heating. The price threshold for non-residential consumers who are eligible for the price plan will remain at 750 kWh per month for all seasons.
Last updated: 19 September, 2005
Does the 5.0 cent/5.8 cent split rate billing that applies to residential customers also apply to business customers?
These rates apply to low-volume consumers, including all residential customers and many small businesses. Specially designated consumers like hospitals, universities, schools and municipalities remain eligible for the 5.0 cent/5.8 cent pricing until April 1, 2008, when they will have the same options as medium and large businesses.
Last updated: 19 September, 2005
Why did Ontario choose to proceed with the refurbishment of the Pickering nuclear station?
Ontario is facing a looming electricity supply gap and we must leverage power that is most readily available to us. The restart of Pickering A Unit 1 will deliver 515 megawatts of affordable electricity. That is enough electricity to power 350,000 Ontario homes. The refurbishment of the station is now complete and is expected to return to full commercial service in Fall 2005.
Last updated: 24 February, 2006
What is being done about the waste from our nuclear plants?
In 2002, the federal government established the Nuclear Waste Management Organization (NWMO). The mandate of this organization is to work with Canadians to develop an approach for the long-term management of Canada's used nuclear fuel. The NWMO's mission statement reflects its commitment to a management that is socially acceptable, technically sound, environmentally responsible and economically feasible.
The NWMO has involved all interested individuals and organizations in helping to shape its recommendations to the federal government. Its discussion papers have invited public input on several aspects of a nuclear waste management framework, including governance, social aspects, environmental impact, technical adequacy, economic viability as well as ethical and security considerations.
In May 2005, NWMO released its third major report, a working draft of its study report and recommendation for public comment and review. The document presents the Adaptive Phased Management Approach for long-term used nuclear fuel management, which NWMO is proposing to recommend to the Government of Canada in November 2005. The document also outlines how the proposal was developed and how the NWMO is meeting the requirements of the Nuclear Fuel Waste Act.
Public participation in these consultations is fundamental to the development of an acceptable plan for the safe management of nuclear waste. To participate directly in this important discussion, you can provide your comments in writing to:
Nuclear Waste Management Organization
49 Jackes Avenue, First Floor
Toronto Ontario, M4T 1E2
or through the website at www.nwmo.ca.
Last updated: 24 February, 2006
Why is the Ontario government shutting down coal-fired generators like Nanticoke?
One of the government's top priorities is to clean up the air, improve the health of Ontarians and contribute to the sustainability of the environment by replacing coal-fired generation in the province with cleaner sources of energy and conservation.
This decision is based on the health and environmental costs of coal. An independent cost-benefit analysis released in April 2005 found emissions for all coal-fired stations were responsible for up to 668 premature deaths, 928 hospital admissions and 1,100 emergency visits in Ontario per year. It also estimated the annual costs of coal-fired generation, including health and environmental costs, to be $4.4 billion - significantly more expensive than other sources of electricity.
In addition, Ontario's coal-fired plants are among the largest industrial source of greenhouse gas emissions in the province and among the largest emitters of smog-causing pollutants.
The government closed the first of the province's five coal-fired plants, Lakeview Generating Station, located in the western Greater Toronto Area, on May 1, 2005. Three of the remaining four coal-fired generating stations are scheduled to close by the end of 2007, and the last station, Nanticoke, in 2009. Ontario is making the environment and health of its citizens a top priority by being the first jurisdiction in North America to stop burning coal.
Last updated: 24 February, 2006
What is the government doing to support 'green power'?
The Ontario government is committed to the development of new renewable sources of electricity generation. The government has set a goal of five per cent of all generating capacity in the province to come from renewable sources by 2007 and 10 per cent by 2010.
In June 2004, the Ministry of Energy issued a Request for Proposals (RFP) for approximately 300 megawatts (MW) of new, renewable electricity capacity for Ontario. The 10 winning projects, totaling 395 MW, were announced in November 2004. In April 2005, the government announced two more Renewables RFPs. The first calls for up to 1,000 MW of new renewable energy supply from generation facilities between 20 MW and 200 MW. The other RFP seeks up to 200 MW of new renewable energy supply from generation facilities with contract capacities less than 20 MW. For more information on the Renewables RFPs, you can visit the website at www.ontarioelectricityrfp.ca.
The Niagara Tunnel project will increase the amount of water flowing to existing turbines at the Sir Adam Beck Generating Station to produce an additional 1.6 terawatt-hours of clean, renewable electricity per year - enough power to meet the annual needs of 160,000 homes, or a city twice the size of Niagara Falls.
The Ministry of Natural Resources announced the government is opening up Crown land to wind and water power development and is inviting interested parties to apply to explore Crown land for wind farms and the development of hydroelectric power. The Waterpower Site Release and Development Review Policy establishes a framework for developing Ontario's waterpower resources in a way that encourages aboriginal economic development, increases the amount of energy coming from renewable sources and supports sustainable development within an ecological context.
Electricity consumers in Ontario who produce some of their own power may now take advantage of 'net metering'.
The Ministry of Energy has filed a net metering regulation which allows electricity customers who install their own renewable generation equipment to return electricity to the grid for credit. The new regulation eliminates inconsistencies across the province and requires that distributors permit net metering for all eligible projects that produce up to 500 kilowatts. Projects that produce electricity from clean sources such as water, wind, solar power and farm biomass are eligible.
The Ministry has produced a brochure to assist consumers who are interested in learning more about net metering.
Click here to read the brochure (
PDF 450kb)
Last updated: 30 November, 2005
What incentives does the government provide for alternative energy?
The Ontario government has identified the need to increase support for alternative and renewable energy. It provides the following tax incentives for clean, alternative or renewable electricity generation facilities:
- Corporate retail sales tax rebate for building materials
- 100 per cent corporate tax write-offs for the cost of newly acquired assets
- Capital tax exemption for newly acquired assets.
In addition, the Ontario government currently offers rebates of the provincial retail sales tax (RST) on the purchase of residential solar, wind, micro-hydroelectric or geothermal energy systems, or on any expansions or upgrades to existing systems installed in residential premises until November 25, 2007. For detailed information or to claim the sales tax rebate, contact the nearest Ontario Ministry of Finance Tax Office listed under Taxes - Provincial (Retail) Sales Tax in the blue pages of your phone directory, or call the TAX FAX Service at 1-877-482-9329, or visit the Ministry of Finance website at www.trd.fin.gov.on.ca.
Electricity consumers in Ontario who produce some of their own power may now take advantage of 'net metering.' The Ministry of Energy has filed a net metering regulation, which allows electricity customers who install their own renewable generation equipment to return electricity to the grid for credit. The new regulation eliminates inconsistencies across the province and requires that distributors permit net metering for all eligible projects that produce up to 500 kilowatts. Projects that produce electricity from clean sources such as water, wind, solar power and farm biomass are eligible.
The Ministry has produced a brochure to assist consumers who are interested in learning more about net metering.
Click here to read the brochure (PDF 450 kb)
Last updated: 24 February, 2006
