Ontario Electricity Market Price (OEMP)
Ontario Electricity Market Price (OEMP)
Electricity prices in Ontario change in response to supply and demand. Businesses with a peak demand of 50 kilowatts (kW) or more and an interval meter pay the wholesale price for electricity.
Who sets the price?
The Independent Electricity System Operator (IESO) administers Ontario’s wholesale electricity market and calculates the Ontario Electricity Market Price (OEMP). The OEMP applies to:
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Large consumers that participate directly in the electricity market
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Local distribution companies, who recover it from customers that pay the market price.
How is the price calculated?
The wholesale price is set daily through the Day-Ahead Market (DAM) based on the Ontario Zonal Price (OZP)—an hourly price that is the same across Ontario—plus the Load Forecast Deviation Adjustment (LFDA).
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OZP: The uniform hourly market price for electricity in Ontario.
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LFDA: An adjustment that reflects the cost difference between the IESO’s forecasted demand (scheduled a day ahead) and the actual amount of electricity used in real time by non-dispatchable loads.
What happens if the DAM fails?
If the DAM is unavailable (e.g., due to a software issue), the IESO uses the Real-Time Market (RTM) OZP to calculate the hourly price.
Who pays the OEMP?
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Businesses with a peak demand of 50 kW or greater
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Businesses equipped with an interval meter
These customers pay the hourly wholesale market price rather than a regulated rate.
Learn more about the Ontario Market Prices by clicking here.
Or visit: https://www.ieso.ca/Power-Data/Price-Overview/Ontario-Market-Prices