Rates
Please Note re May 1, 2010 Rate Changes:
As of May 1, 2002 the Ontario electricity market opened to competition. This means you can choose to lock in a fixed price with an Ontario Energy Board (OEB) licensed retailer or remain on standard supply service from Essex Powerlines and receive energy at market prices or at a fixed rate set by legislation (Referred to as Regulated Price Plan, RRP) if you qualify as a low volume or designated customer.
Your new bill is fully unbundled and includes several new line items. The Standard Supply Service Commodity or "Your Electricity Charges" on your bill is the only item subject to competition and may be purchased from any Ontario Energy Board (OEB) licensed retailer. If you have already signed with a retailer, this line will say the retailer name, or a descriptive line supplied by the retailer and telephone number of the retailer shown above. You do not have to sign with a retailer if you do not want to. If you don't switch, Essex Powerlines will continue to supply you with power at market prices or at a fixed rate set by legislation if you qualify as a low volume or designated customer. This is referred to as Summer or Winter - Block 1 and Block 2.
The only charges collected by Essex Powerlines Corporation included under delivery are fixed monthly charge and the variable distribution charge. The remainder of the charges are approved rates from the OEB that are collected and remitted to various agencies such as the IESO, Hydro One, the Debt Retirement Program, a Retailer or the Federal Government (GST). They are as follows:
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Usage Incl. Losses:
After May 1, 2002 your consumption will be uplifted by a rate of 1.0602 (1.0496 for Primary metered customers) to account for system losses that occur in the delivery of electricity to your home. For example if you had used 1,000 kWh in a month, this amount will be multiplied by the factor of 1.0602 for a total of 1060.2 kWh of consumption that will form the basis for some of the charges. These losses used to be included in the bundled cost of power. This "Total Loss Factor" is an Ontario Energy Board approved rate. Essex Powerlines pays for losses that occur up to the point electricity comes into our system
Debt Retirement Charge:
This rate of $0.007 /kWh will be used to pay down Ontario Hydro's stranded debt. This rate was established by the Ministry of Finance. The total loss factor is not applied to this charge. These funds are remitted to the Ontario Electricity Financing Corporation.
Wholesale Market Services:
This rate represents all costs associated with maintaining the administration of the IESO wholesale market activities. The rate for this charge is $0.0065/kWh. This charge used to be included in the cost of power.
Transmission Line and Transformation Connection Service:
This rate represents the cost to operate and maintain the high voltage system to deliver power to Essex Powerlines. The cost of power used to include these charges.
Transmission Network Service:
This rate represents the cost to ensure there is sufficient capacity in the high voltage system to supply the increasing demands of a growing economy in Ontario. This used to be included in the cost of power.
SSS Administration Fee:
This $.25 cent charge to all Standard Supply Service customers represents the cost for Essex Powerlines to participate in the electricity commodity market on your behalf. Customers that have signed with a retailer do not receive this charge because it is included in their fixed price contract.
Special Purpose Change:
This rate was established to enable the recovery of the expenses incurred by the Ministry of Energy and Infrastructure with respect to energy conservation and/or renewable energy programs.
BILL 100 - GLOBAL ADUSTMENT (Provincial Benefit) January 1, 2005
Electricity prices will be regulated for designated Ontario Power Generation (OPG) baseload generators. The impact of these set prices will be factored into a new 'Global Adjustment' (GA).
Effective July 1, 2005, the Global Adjustment amount will be calculated each month by taking into account the amount of each type of regulated or contracted generation injected into the IMO-controlled grid, the regulated price or contract costs for that generation, and any offsetting market revenues. As of July 2005 the Ontario Energy Board (OEB) will begin calculating the GA for each day, to be posted 10 business days after the trade day.
The Global Adjustment will apply to customers, that are not designated and are not on a Fixed Price Plan, and who have signed with a Retailer for a fixed price contract.
Provincial Benefit as referred to in the OEB glossary of terms is "The price of generation in Ontario is set by a competitive market. Certain generators receive payments through regulation or contract that differ from the market price. Your portion of the net adjustment arising from these different payments is included on your bill".