Commercial Electricity Rates
We charge customers for the cost of electricity and collect payment on behalf of the organizations that work together to ensure the safe and reliable operation of Ontario’s electricity system. The charges on your bill fall under four categories: electricity costs, delivery costs, regulatory and taxes.
COVID-19 Rate Relief for Large Customers - Ontario Government Issues Emergency Order (EO): Deferral of Global Adjustment Charges
To provide companies with temporary immediate relief on their electricity bills, the Ontario government implemented an Emergency Order (EO) on Friday, May 1, 2020 that defers a portion of the Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP), starting from April 2020.
The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value. Large industrial and commercial consumers (i.e. Class A) will receive the same percentage reduction in GA charges as Class B consumers.
The government intends to keep this relief in place through the end of June 2020, subject to necessary extensions and approvals.
Industrial and commercial electricity consumers will automatically see this relief reflected on their bills. Consumers who have already received their April bill should see an adjustment on a future bill. Find out more about this rate relief
How much electricity you use determines the rate you pay. Residential consumers and small businesses, for the most part, pay for electricity via time-of-use (TOU) rates, which include the Global Adjustment charge. Larger commercial customers usually pay the Hourly Ontario Energy Price (or Spot price), plus the Global Adjustment.
Hourly Ontario Energy Price (HOEP)
The Spot price is determined by matching supply with Ontario's demand for electricity in the real-time market operated by the Independent Electrical System Operator (IESO). In Ontario, all electricity rates reflect the wholesale electricity price in some way. The wholesale price of electricity is dynamic − changing hourly based on demand and the availability of supply. Learn more about HOEP
Global Adjustment is collected on behalf of the Independent Electricity System Operator (IESO) and covers the cost for providing both adequate generating capacity and conservation programs for Ontario. It applies to business customers who pay the spot market price and customers who have signed a contract with a licensed electricity retailer. Find out more about the Global Adjustment
The delivery charge covers the costs of delivering electricity from generating stations across Ontario to Burlington Hydro and then to your business. It includes the costs to build and maintain distribution lines, towers and poles, and to operate the local electricity system. The delivery charge also includes Hydro One transmission costs and system losses.
Before Burlington Hydro can make any changes to their rates they are required to seek approval from the OEB through a rate application process. The Board reviews each rate application independently in a public process and approves the rates each distributor can charge. BHI’s current rates:
|General Service 50 to 4,999 kW|
|Rate Rider for Recovery of Incremental Capital Project 2 (2019) – effective until the next cost of service based rate order – Implemented December 1, 2019||$.30|
|Distribution Volumetric Rate||$3.1231 /kWh|
|Rate Rider for Disposition of Global Adjustment Account (2020) – effective until April 30, 2021 – Applicable only for Non-RPP Customers||$0.0014 /kWh|
|Rate Rider for Disposition of Deferral/Variance Accounts (2020) – effective until April 30, 2021||($0.2452) /kWh|
|Rate Rider for Disposition of Lost Revenue Adjustment Mechanism Variance Account (LRAMVA) (2020) – effective until April 30, 2021||$0.1703 /kWh|
|Rate Rider for Disposition of Capacity Based Recovery Account (2020) – effective until April 30, 2021 – Applicable only for Class B Customers||($0.0300) /kWh|
|Rate Rider for Recovery of Incremental Capital Project 2 (2019) – effective until the next cost of service based rate order – Implemented December 1, 2019||$0.0148 /kWh|
|Retail Transmission Rate – Network Service Rate – Interval Metered||$3.0608 /kWh|
|Retail Transmission Rate – Line and Transformation Connection Service Rate – Interval Metered||$2.7032 /kWh|
|Wholesale Market Service Rate (WMS) – not including CBR||$0.0030 /kWh|
|Capacity Based Recovery (CBR) – Applicable for Class B Customers||$0.0004 /kWh|
|Rural or Remote Electricity Rate Protection Charge (RRRP)||$0.0005 /kWh|
|Standard Supply Service – Administrative Charge (if applicable)||$0.25|