Debt Retirement Charge Exemption for Bulk Metered Multi-Unit Residential Premises
Effective January 1, 2016, all customers with a residential account will be exempt from the Debt Retirement Charge (DRC). Customers with a general service account that provides electricity to one or more "eligible residential units" will also be eligible for a DRC exemption up to 1,500 kWh per month, mulitiplied by the number of eligible residential units included in this account. Click here for more information and form. In order to qualify for the exemption as of January 1, 2016, the completed paperwork must be submitted by November 20, 2015.
The Electricity Bill
The Ontario Government has issued a Regulation that requires all electricity distributors to simplify and standardize the bills they send to small business customers. The bill has four major components:
Most small business customers are billed using Time-of-Use rates set by the Minister of Energy bi-annually on May 1st and November 1st. Large business consumers are billed using the Ontario hourly electricity market price or the contract price if they purchase their electricity from a retailer. The total amount of electricity consumed is multiplied by an adjustment factor, previously called the loss factor. The transmission equipment consumes this power before it gets to your home or business. Your local utility collects the cost of this power from consumers through the adjustment factor and passes the amount directly to its suppliers.
This charge is made up of the following components which are approved by the Ontario Energy Board:
These costs cover the costs that your local utility incurs in delivering the electricity to your home. The customer service charge covers administrative costs such as meter reading, billing, customer service and maintenance of accounts. This is a fixed cost. The distribution charge includes the cost of building and maintaining the wires and poles.
This component covers the costs of delivering electricity from the generating station to your utility along the high-voltage transmission system owned by Hydro One Networks Inc. The Network Service Charge covers the cost of delivering the electricity while The Line and Transformation Connection Service Charge covers the costs your utility incurs in connecting to Hydro One’s transmission lines.
Wholesale Market Service Charge
This charge covers the cost of services provided by the Independent Electricity System Operator. The IESO operates Ontario's competitive electricity market, where electricity is bought and sold. This charge also includes a 0.0012 cent per kWh charge for Rural and Remote Rate Protection, which all customers pay to offset the higher cost of distributing electricity to consumers in rural and remote areas of Ontario.
Standard Service Supply Charge
This charge of $0.25 per month covers the administrative costs incurred by your utility in providing electricity to Standard Supply Service customers. This is a fee regulated by the Ontario Energy Board.
This charge pays down the residual stranded debt incurred by the former Ontario Hydro. All customers in Ontario will pay this charge and this is remitted directly to the Ministry of Finance. This varies as to the percent of the load that was purchased from Ontario Hydro due to local generation.