What is Electricity?
Electricity is the flow of moving electrons. When the electrons flow, it is called an electrical current. Electricity is used to light up our homes, cook our food, watch TV, and power our computers and other devices.
In Ontario, electricity is measured in Kilo Watt Hours, also known as kWh (1,000 Watt Hours).
A typical average residential home consumes around 800 kWh of electricity per month and about 10,000 kWh per year.
What is a Smart Meter?
A smart meter is an electronic device that records how much and when your electricity is used, typically hourly, and transmits this information automatically to your local distribution company ("LDC").
What is Time-of-use Pricing?
Time-of-use pricing reflects the cost of producing electricity at different times of the day. There are three time-of-use periods: Off Peak, Mid Peak, and On Peak.
Time of Use Rates Nov 1st 2019 - April 30th 2020
ON PEAK (Red): 20.8 cents per kWh
MID PEAK (Yellow): 14.4 cents per kWh
OFF PEAK (Green): 10.1 cents per kWh
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Off Peak - when energy demand is low and less expensive sources of electricity are used (indicated in green)
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Mid Peak - when the cost of energy and demand are moderate (indicated in yellow)
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On Peak - when demand is highest and most expensive forms of electricity production are used (indicated in red)
People use electricity differently depending on the season.
The Ontario Energy Board established two sets of peak prices:
Summer and Winter.
During the Summer Months on Weekdays:
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Mid peak price starts at 7 am - 11 am as you wake up in the morning
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On peak price will set in from 11 am - 5 pm when typically air conditioners are running at the highest
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Mid peak will then return from 5 pm - 7 pm
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Off peak will then begin from 7 pm - 7 am
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Saturday, Sunday and Statutory Holidays are entirely off peak times
During the Winter Months on Weekdays:
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On peak price starts at 7 am - 11 am as you wake up in the morning
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Mid peak price will set in from 11 am - 5 pm
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On peak will then return from 5 pm - 7 pm usually when people get home from work or school
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Off peak will then begin from 7 pm - 7 am
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Saturday, Sunday and Statutory Holidays are entirely off peak times
What is Two-Tiered Electricity Pricing?
By now, almost everyone in Ontario has had a smart meter installed, and is getting used to paying three different tiered rates. However, there are still a number of electricity consumers who are paying two-tiered rates for their electricity.
A two-tiered consumer can use a certain amount of energy each month at a lower price, but once they pass that threshold and use more, their rate goes up for all the additional electricity they use.
In the summer (May 1st to October 31st), a residential consumer can use the first 600 kWh at the lower tiered price, and everything over that will be charged the second and more expensive tiered price.
In the winter (November 1st to April 30th), a residential consumer can use the first 1,000 kWh at the lower tiered price, and everything over that will be charged the second and more expensive tiered price.
What is the Global Adjustment?
The Global Adjustment (used to be called the Provincial Benefit) is a charge or credit for all electricity consumers.
The global adjustment pays for the cost of conservation programs and accounts for the differences between the wholesale market price of electricity and the regulated or contract prices paid to generators for the electricity they produce.
When you choose an electricity retailer like Canadian Energy Protection, the global adjustment will be shown
as a separate line on your electricity bill.
What is the RPP Settlement?
The RPP settlement is a one-time charge or credit that will appear on your utility bill from your LDC when you choose a supplier like us. The price you are charged on the RPP may not reflect the actual prices paid to generators. Eventually the difference needs to be settled for all consumers on the RPP. That difference is tracked a variance account and incorporated into future RPP prices set by the OEB. For consumers that leave the RPP, that difference needs to be settled upon leaving. You will be reimbursed if consumers on the RPP have been paying more for electricity than what was paid to generators, or you will need to pay your local utility if consumers have been paying less than what was paid to generators. (Source: Ontario Energy Board)
Want to learn more? Click here to learn about the charges on your electricity bill!