Standard Supply Service
What is Standard Supply Service?
The Electricity Act of 1998 mandates us (like all distributing companies in Ontario) to supply electricity to any home or business that is connected to our wires. No matter who you buy electricity from, it’s our obligation and commitment to make sure that all of our customers are delivered electricity over our power lines, safely and reliably.
The delivery of your electricity is different from the purchase of your electricity as a commodity. In the open market, you have two choices of who to buy it from: you can sign with a retailer or receive it from your distributor under Standard Supply Service.
Under Standard Supply Service, Essex Powerlines will continue to purchase electricity on your behalf at the given market rate (with no mark-up or profit) and deliver it to you much the same way we do today. To receive it, simply do nothing, and you will automatically be charged under Standard Supply Service rates.
There is no set contract term with Essex Powerlines for Standard Supply Service. As a Standard Supply Service customer, you can switch to a retailer at any time.
How much does it cost?
The price you pay for your electricity under Standard Supply Service is dependent on market conditions relating to the supply and demand for electricity, over which we have no control.
The Independent Electricity System Operator (IESO), who monitors the supply and demand for electricity in Ontario, is responsible for linking buyers and sellers of electricity in the competitive market. We receive the spot market price from the IESO, average it over your billing period, and then pass that per-kilowatt-hour price along to you with no mark-up or profit. As of May 1, 2008, the OEB fixed the price of electricity at 5.0 cents/kWh for the first 600 kWhs and 5.9 cents per kWh for the balance for residential, low volume and designated customers . The Threshold will change to 1000 kWhs per month during the winter season (Nov 1 to Apr 30).
The rates you pay for delivery and other industry charges stay constant. However, since the amount of electricity you use in each billing period will vary, that total will fluctuate. Your service charge is a fixed fee: it won’t change from one billing period to the next.
The rate Essex Powerlines charges for electricity – as well as the level of service we provide – is regulated by the Ontario Energy Board.