The Global Trend of Solar Power
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Brief introduction of electricity system and pricing in Ontario
In Ontario, the electricity system comprises several domains: generation, transmission, distribution, a market operator, a power purchase authority and a regulator. There are several components that constitute the final electricity bill and the fundamental rule is how much you pay the bill depends on how much electricity you consume. Total commodity cost of electricity includes two parts: the Wholesale Price (determined by the supply and demand in the market) and the Global Adjustment (a side-payment that provides generators with revenue guarantees set by the provincial government). Large businesses (consuming more than 250,000 kilowatt hous (kWh) of electricity per year / more than $2,000 electricity bill) normally pay hourly wholesale prices (Hourly Ontario Electricity Price or Weighted Wholesale Price according to whether they have an internal meter) with a separate Global Adjustment charge, while most residential consumers and small businesses (around five million) pay Time-Of-Use rates (dividing into three time periods: peak, mid-peak and off-peak) with a minority pay Tiered Rates. The electricity bills presented to the customers are complex and normally categorized into several charges: energy, delivery, regulatory, and debt retirement charge.
Large Consumers (Business and Public Sector)
The electricity bill of the large Consumers is based on two factors: energy consumption and peak demand. The rates comprise energy charges (including Global Adjustment), wholesale market services charge, debt retirement charge, transmission charge and some other fixed service charges.
Small Consumers (Residential and Small Business)
Most of the small consumers pay for the electricity bill, depending on the time they use electricity. The charts below show the trend of time-of-use electricity prices and tiered prices since 2006 respectively (Source: Ontario Energy Board).
Electricity prices...
In Ontario, the electricity system comprises several domains: generation, transmission, distribution, a market operator, a power purchase authority and a regulator. There are several components that constitute the final electricity bill and the fundamental rule is how much you pay the bill depends on how much electricity you consume. Total commodity cost of electricity includes two parts: the Wholesale Price (determined by the supply and demand in the market) and the Global Adjustment (a side-payment that provides generators with revenue guarantees set by the provincial government). Large businesses (consuming more than 250,000 kilowatt hous (kWh) of electricity per year / more than $2,000 electricity bill) normally pay hourly wholesale prices (Hourly Ontario Electricity Price or Weighted Wholesale Price according to whether they have an internal meter) with a separate Global Adjustment charge, while most residential consumers and small businesses (around five million) pay Time-Of-Use rates (dividing into three time periods: peak, mid-peak and off-peak) with a minority pay Tiered Rates. The electricity bills presented to the customers are complex and normally categorized into several charges: energy, delivery, regulatory, and debt retirement charge.
Large Consumers (Business and Public Sector)
The electricity bill of the large Consumers is based on two factors: energy consumption and peak demand. The rates comprise energy charges (including Global Adjustment), wholesale market services charge, debt retirement charge, transmission charge and some other fixed service charges.
Small Consumers (Residential and Small Business)
Most of the small consumers pay for the electricity bill, depending on the time they use electricity. The charts below show the trend of time-of-use electricity prices and tiered prices since 2006 respectively (Source: Ontario Energy Board).
Electricity prices...