In Ontario's Open Electricity Market, You're Free to Choose Your Supplier
Since May 1 2002, the Ontario electricity market has been open to competition. That gives you the option to choose to have London Hydro continue to supply your electricity under the Regulated Price Plan (RPP) which includes Time-of-Use (ToU) rates, or you can choose to sign a contract with a private energy retailer.
When You Choose London Hydro, This Is How It Works
As a London Hydro customer, RPP pricing ensures that you are supplied with electricity and that the price you pay for the electricity you is regulated. RPP residential customers are charged ToU rates, which assigns different rates paid for electricity based on the time of day you use it. Under the RPP ToU, the Ontario Energy Board sets three prices – On-Peak, Mid-Peak and Off-Peak -- for your electricity consumption.
Your smart meter records how much electricity you use and when you use it. The three distinct categories are each associated with specific periods of the day:
- On-Peak rates apply to the time of day when electricity is in high demand;
- Mid-Peak applies to the times during the day when there is medium demand; and
- Off-Peak applies to the time of day when electricity demand is at its lowest.
ToU pricing rewards you for using electricity during low-demand periods whenever possible. The lowest rates are at night, on weekends and statutory holidays. These RPP ToU rates are subject to change on May 1st and November 1st of each year.
When You Choose a Private Energy Retailer, This Is How It Works
Numerous companies have been licensed by the Ontario Energy Board to offer fixed rate, fixed term contracts to supply electricity. This competition gives you the opportunity to compare rates and offers and sign a contract with the electricity retailer of your choice.
Remember, electricity retailers are quoting only on the commodity price of electricity, which appears in the "Electricity Charge" portion of your bill. All the other regulated charges on your bill - including Delivery Charges, Regulatory Charges and Government Charges are not included in their rates.
It is also important to note that these companies are independent, private energy marketers that do not have any affiliation with London Hydro.