The price businesses pay for electricity depends on how much electricity they use and how their electricity use is tracked.
Medium and Large-Sized Business
Businesses that have a demand of more than 50 kilowatts (kW) (roughly 250,000 kilowatt hours (kWh) of electricity a year, spending roughly $2,000 a month) pay the wholesale price through their local utility. With wholesale pricing, these businesses have three options:
- If a business has an interval meter, it pays the Hourly Ontario Energy Price.
- If it doesn't have an interval meter, it pays a weighted wholesale price based on the consumption pattern of its local distribution company (LDC).
- These consumers may also choose to move to a fixed-price contract offered by a retailer.
Wholesale customers are also subject to the monthly Global Adjustment.
Learn more about how the commodity cost and other electricity charges are determined for these customers.
Market Participants – Large Industrial Consumers
Some large businesses participate directly in the IESO-administered market. These companies are either connected directly to the transmission grid and buy electricity through the market; or they are looking to take advantage of the IESO's operating reserve market, which provides payments for providing extra supply to the system.
Small Business
Businesses that have a demand of less than 50 kW or use less than 250,000 kWh a year pay the same rate as residential consumers – the Regulated Price Plan (RPP). Under the RPP, small businesses pay a tiered price for electricity, unless time-of-use rates are in effect in their area. Small businesses also have the option of signing a contract with a retailer.
Other Electricity Charges
The commodity or electricity cost is just one component of your bill. Learn more about other electricity charges for residential and small business consumers.
|
