Some of these line items have more than one component. The Delivery charges vary by region, but the other three line items are the same for all Veridian General Service (< 50 kW) customers. Most but not all of the charges are based on your electricity usage (i.e. kWh).
Below is a breakdown of the calculations used to determine each of the four line items that make up your Veridian bill.
This charge is for the electricity you used during the billing period. The price that you pay for electricity is dependent on your account status:
- Most general service customers in this rate class are on the Regulated Price Plan. Prices under this plan reflect market prices, but are fixed for six month terms to provide greater price stability for customers. For more information on this price plan, including eligibility criteria, please visit the Consumer Information section of the Ontario Energy Board’s website at: www.oeb.gov.on.ca.
- Customers who have signed contracts with licensed electricity retailers are billed according to their Retail Contract Price. If you have contracted with a retailer for your electricity supply, your retailer’s name and contact information will be presented on your Veridian bill.
- Customers who are not eligible or have opted out of the Regulated Price Plan and who have not signed contracts with retailers are billed at the Hourly Ontario Energy Price (HOEP). This price is based on the spot market price for electricity as established in the Independent Electricity System Operator (IESO) administered market.
Prices effective May 1, 2018:
Tiered RPP Prices:
7.7¢/kWh for electricity use up to and including 750 kWh per month*
8.9¢/kWh for electricity use above 750 kWh per month*
*These are the prices that appear on the electricity line of your bill. They do not include other charges on your total bill like delivery.
Time-of-Use (TOU) Prices:
6.5¢/kWh Off-Peak Price
9.4¢/kWh Mid-Peak Price
13.2¢/kWh On-Peak Price
Delivery represents the costs of bringing electricity to your business, including those costs for building and maintaining the overhead and underground distribution networks. The Delivery charge has two components: Transmission – which represents the cost of moving electricity over the power grid from producers to Veridian; and, Distribution – which represents the cost of moving electricity over Veridian’s system to its customers, which varies by region:
- This covers the costs involved in transmitting electricity from generators to Veridian.
- This covers the cost of delivering electricity to your business, including expenses for construction and maintenance of overhead and underground distribution networks.
$17.62 per month
- This is a charge for Veridian costs of maintaining customer relationships, i.e., the costs that don’t change with the consumption of electricity, such as meter reading and billing, stated monthly.
* Your metered consumption is multiplied by an Adjustment Factor before calculating these charges. 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 adjustment factor accounts for these losses, and is applied to those charges denoted with an asterisk. Veridian’s adjustment factor is 1.0482 for most customers.
This cost category includes three components:
- The Wholesale Market Service Charge – recovers the cost of the services provided by the Independent Electricity System Operator (IESO) to operate the electricity system and administer the wholesale market.
- The Rural or Remote Electricity Rate Protection (RRRP) Charge – funds the RRRP Program, which provides rate protection to customers located in rural or remove areas, where the cost of distributing electricity is higher.
- The Standard Supply Service (SSS) Charge – covers administration costs for consumers purchasing electricity under the Regulated Price Plan or at market prices:
Wholesale Market Service Charge*: 0.36¢/kWh
Rural or Remote Electricity Rate Protection (RRRP) Charge: 0.03¢/kWh
Standard Supply Service (SSS) Charge**: 25¢ per month** Does not apply to customers who purchase their electricity from a registered retailer.
Debt Retirement Charge
The Debt Retirement Charge (DRC) will end for all electricity users on March 31, 2018. No user should be charged the DRC on electricity consumed beginning April 1, 2018.
Ontario Ministry of Finance Website