This is the cost of the electricity supplied to you during this billing period and is the part of the bill that is subject to competition. The electricity consumed is multiplied by the adjustment factor*. Alectra Utilities collects this money and pays this amount directly to our suppliers.
The wholesale price of electricity is determined in the real-time market administered by the Independent Electricity System Operator (IESO). All electricity consumers in Ontario pay the wholesale price, also referred to as the commodity price, except for those who have entered into a retail contract. The IESO calculates the hourly Ontario energy price, which is charged to large consumers that participate in the market, as well as local distribution companies who recover it from the subset of customers that pay the market price.
The Global Adjustment applies to customers who pay the Hourly Ontario Energy Price (HOEP) or who have a retail energy contract for electricity supply. The Global Adjustment accounts for differences between the HOEP and the rates paid to regulated and contracted generators. It also includes the cost to deliver conservation and demand management programs. Alectra Utilities collects this charge, without mark-up, and pays this amount directly to the Independent Electricity System Operator (IESO). All customers in Ontario pay Global Adjustment. Customers that participate in the Industrial Conservation Initiative (ICI), referred to as Class A customers, pay based on an annual determination of their coincident peak demand. All other customers in Ontario pay a share of Global Adjustment through the Class B Global Adjustment rate. The Global Adjustment appears as a separate line item on the electricity bill.
You can sign a contract with an energy retailer for your electricity supply. Energy retailers are private companies and are not associated with Alectra Utilities, the Ontario Energy Board, the government or any government program. However, the Ontario Energy Board licenses energy retailers and plays a role to ensure they follow the laws and rules that protect consumers from unfair or misleading business practices. For additional information, visit our Retail Energy Contract page.
These are the costs of delivering electricity from generating stations across the Province to Alectra Utilities then to your home or business. This includes the costs to build and maintain the transmission and distribution lines, towers and poles and operate provincial and local electricity systems. A portion of these charges are fixed and do not change from month to month. The rest are variable and increase or decrease depending on the amount of electricity that you use.
* When electricity is delivered over a power line, it is normal for a small amount of power to be consumed or lost as heat. Equipment, such as wires and transformers, consumes power before it gets to your home or business. The Loss Adjustment Factor accounts for these losses.
Per kilowatt charge
Per kilowatt-hour charge
Per kilowatt charge
Regulatory charges consist of the Wholesale Market Service Charge (WMS), Rural and Remote Electricity Rate Protection Charge (RRERP), Ontario Electricity Support Program Charge (OESP) and the Standard Supply Charge (SS). These charges are set by the Ontario Energy Board and the same rates apply across the Province.
WMS charges are collected to recover the costs of the Independent Electricity System Operator (IESO) to operate the wholesale electricity market in Ontario. The RRERP charge is used to partially offset the higher cost of providing electricity to customers in rural and remote areas. The OESP is collected to pay the costs of providing eligible low-income customers with a monthly credit on their electricity bill. The SS is an administrative fee charged to customers who purchase their electricity directly from their local utility rather than a retailer.
Per kilowatt-hour charge*
*Billed on Adjusted Usage