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The government of Ontario extended the RPP eligibility deadline to November 1, 2009 to allow MUSH sector customers ample time to review the options prior to implementation.
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You’ll have two options:
1. Automatically be moved to the market based hourly price, and be billed at the Hourly Ontario Energy Price (HOEP) for electricity according to the type of meter currently installed at your facility:
Interval Meter – you will be billed based on your own facility’s hourly consumption profile.
Non-interval Meter – you will be billed based on Toronto Hydro Net System Load Shape.
2. You can enroll with an Ontario Energy Board (OEB) licensed electricity retailer and pay a contracted price for electricity.
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How will my bill change when my RPP eligibility ends?
You'll no longer be billed RPP prices for electricity. You'll either pay the market based hourly price for electricity or a contracted price for electricity, if you have signed with a retailer.
You’ll continue to be billed on RPP prices, provided your average monthly demand is less than 50 kW per month or 250,000 kWh per year.
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With spot market pricing, or market based hourly pricing, you pay actual wholesale market prices for electricity. These prices are volatile, fluctuating hourly. Price is determined by market conditions and it changes every hour. Your electricity cost will be based on:
- Your Consumption (how much you use);
- Your peak demand or how quickly you draw electricity from the system; and
- The time of day and day of the week you use it.
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Many factors influence the pricing, including:
- The season in which electricity is used - winter and summer prices are generally higher than the spring and fall.
- Time of day also affects pricing. Prices tend to be higher in late afternoon and early evening.
- The source of electricity is another factor, some being more expensive to run than others. When demand for electricity is high, more expensive generation is needed to meet that demand, driving up the cost of power.
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The Hourly Ontario Energy Price (HOEP) is the wholesale market price that changes hourly. The electricity charge on your bill would reflect your consumption pattern if you have an interval meter. For a conventional meter (non-interval), the electricity charge on your bill would reflect a weighted average price based on the load shape of Toronto Hydro. For more information, visit the IESO website.
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It is determined through a competitive process of generators bidding to supply electricity into the market. The price changes hourly according to the supply and demand.
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What are the advantages of paying the HOEP?
Given the volatility of the wholesale market, prices are able to rise and fall depending on supply and demand. This provides an incentive to use electricity more wisely - shifting electricity use to times of the day when demand and prices are lower. By managing peak demand and using your interval meter to take advantage of price fluctuations, you can actually lower your electricity costs.
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Customers with a conventional meter pay a weighted average system price. This rate is determined using the spot market price for electricity and the load shape of Toronto Hydro.
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What is the current spot market rate for electricity?
The spot market rate is always fluctuating. For the current spot market rate, please visit the IESO website, or call the IESO at 1-888-448-7777.
If you wish to have an interval meter installed, please contact Toronto Hydro at 416-542-8000 or email contactus@torontohydro.com.
An interval meter provides you with information about the amount of electricity that is consumed each hour. You can use this information to better manage your energy usage and costs.
Some customers benefit from the security of knowing exactly what their electricity will cost them per kWh, without having to worry about the ups and downs of the spot market. We encourage customers to understand all the terms and conditions of a contract prior to signing.
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