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Rates & Charges

Residential Electricity Rates

By Ontario government mandate, residential electricity bills are designed to present costs simply and clearly, and to identify to consumers the un-bundled major cost components of their residential electricity usage. In addition, consumers are presented with a cost representing the debt of the former Ontario Hydro, which was stranded when that organization was broken up into five separate components in the transition to an open market for electricity.

  • Electricity
  • Delivery
  • Regulatory Charges
  • Debt Retirement Charge

Some of these line items have more than one component. The Delivery charges vary by region, but the other line items are the same for all VERIDIAN customers. Most but not all of the charges are based on your electricity usage (i.e. kWh).

If you want to learn more about your bill and what each item means, click here.
For a detailed ‘Tariff of Rates and Charges’ including specific service charges click here.

Below is a breakdown of the calculations used to determine each of the four line items that make up your VERIDIAN bill

Electricity

Electricity represents the cost of the electricity itself. These rates cover the cost of power purchased by VERIDIAN on your behalf, and passed through to you without mark-up.

This part of electricity supply is subject to competition. Customers may purchase electricity from any licensed retailer registered with VERIDIAN.

Global Adjustment: ¢/kWh

  • The price of wholesale electricity in Ontario is set by a competitive market. Certain generators receive payments through regulation or contracts that differ from market prices. Customers who pay the Hourly Ontario Energy Price for electricity or who buy electricity under contract from a licensed retailer will see this separate line item on their bill. It allocates their portion of the net adjustment arising from these different payments. 
  • The Global Adjustment rate changes each month and is available at www.ieso.ca 
  • Customers on the Regulated Price Plan will not have this line item presented on the bill. For these customers, the Global Adjustment is embedded in the fixed electricity rates that they pay under the price plan.

Customers not enrolled with a competitive retailer are provided with electricity at the rates shown below:

Prices effective July 1, 2017:

Tiered RPP Prices:

7.7¢/kWh for electricity use up to and including 600 kWh per month*
9.0¢/kWh for electricity use above 600 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
9.5¢/kWh Mid-Peak Price
13.2¢/kWh On-Peak Price


Other sources of information about electricity and rates are:

Ontario Energy Board Call Centre: 416-314-2455

Ministry of Energy: 1-888-668-4636 (toll-free)

Independent Electricity System Operator: 1-888-448-7777 (toll-free)

Delivery

Delivery represents the costs of bringing electricity to your home, 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:

Transmission Charge:

  • This covers the costs involved in transmitting electricity from generators to VERIDIAN.

$0.0116/kWh in Ajax, Belleville, Brock, Clarington, Gravenhurst (Year-Round), Pickering, Port Hope, Port Perry and Uxbridge
$0.0131/kWh for Seasonal customers

Distribution Charge:

  • This covers the cost of delivering electricity to your home, including expenses for construction and maintenance of overhead and underground distribution networks.

$0.0074/kWh in Ajax, Belleville, Brock, Clarington, Gravenhurst (Year-Round) Pickering, Port Hope, Port Perry and Uxbridge
$0.0189/kWh for Seasonal customers

Customer Charge:

  • This is a charge for VERIDIAN’S 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.

$20.52 per month – Ajax, Belleville, Brock, Clarington, Gravenhurst (Year-Round), Pickering, Port Hope, Port Perry and Uxbridge
$38.18 for Seasonal customers

Loss Adjustment Factor:

*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 this charge will be included in the delivery section of your bill. Veridian’s adjustment factor is 1.0482


Other sources of information about electricity and rates are:

Ontario Energy Board Call Centre: 416-314-2455

Ministry of Energy: 1-888-668-4636 (toll-free)

Independent Electricity System Operator: 1-888-448-7777 (toll-free)

Regulatory Charges

This cost category includes three components:

  1. The Wholesale Market Service Charge – recovers the cost of the service provided by the Independent Electricity System Operator (IESO) to operate the electricity system and administer the wholesale market.
  2. The Rural or Remote Electricity Rate Protection (RRRP) Charge – funds the RRRP Program, which provides rate protection to customers located in rural or remote areas, where the costs of distributing electricity is higher.
  3. 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.


Other sources of information about electricity and rates are:

Ontario Energy Board Call Centre: 416-314-2455
Ministry of Energy: 1-888-668-4636 (toll-free)
Independent Electricity System Operator: 1-888-448-7777 (toll-free)

Debt Retirement Charge

Residential customers are exempt from paying the Debt Retirement Charge (DRC) effective January 1, 2016. For more information about the DRC, visit:

Ontario Electricity Financial Corporation

Ontario Ministry of Revenue


Other sources of information about electricity and rates are:

Ontario Energy Board Call Centre: 416-314-2455

Ministry of Energy: 1-888-668-4636 (toll-free)

Independent Electricity System Operator: 1-888-448-7777 (toll-free)