Retail Energy Contracts
As an electricity consumer in Ontario, you have two options when it comes to your electricity supply.
Electricity supplied by Northern Ontario Wires Inc. (NOW Inc.)
You can have your electricity supplied by NOW Inc. through the Regulated Price Plan where prices are set by the Ontario Energy Board. Residential and small business customers are automatically part of the Regulated Price Plan unless they choose to purchase their electricity from an energy retailer.
For more information, visit the Ontario Energy Board website or call toll-free at 1-800-619-6722.
Electricity supplied by an energy retailer
You can sign a contract with an energy retailer for your electricity supply. Energy retailers are private companies and are not associated with NOW Inc., the Ontario Energy Board, the government or any government program. However, the Ontario Energy Board licenses energy retailers and plays a role to ensure they follow the laws and rules that protect consumers from unfair or misleading business practices.
By signing a contract, you are agreeing to purchase electricity at a fixed price for a set period. The fixed price is not regulated by the Ontario Energy Board.
An electricity contract covers only some parts of your bill. You will continue to pay other charges to NOW Inc. even if you sign a contract with an energy retailer. Also, customers switching to a retailer and leaving the Regulated Pricing Plan will have the RPP True-up Settlement applied to their bill.
Be aware that an energy contract may not save you money. Take the time to review and compare the contract offer to what you currently pay. Make sure you understand the total amount you will pay under the contract.
Calculate how much you would pay on an energy contract. If you are considering signing an energy contract, use this handy bill calculator tool provided by the Ontario Energy Board to see how your bill might look based on a contract with an electricity retailer.
What is an RPP True-up Settlement:
When you were on the Regulated Price Plan (RPP), the electricity you used was billed at the regulated time-of-use or tiered rates. These rates are set by the Ontario Energy Board (OEB).
When you switched to an electricity retailer, your pricing changed from the RPP rates to the fixed or contract rate offered by your retailer. Because of this switch, we are required by the OEB to complete what’s called an RPP True-up Settlement.
This settlement is simply a final reconciliation to make sure that the amount you paid under the RPP before you switched matches the actual cost of electricity for that period, based on the province’s wholesale market price.
If you paid more than the actual cost, you would receive a credit.
If you paid less, there will be a charge to reconcile the difference.
This is a standard process required for all customers leaving the RPP to join a retailer.
In summary, if RPP prices were lower than market prices while you were enrolled, you may have been underpaying slightly each month. The true-up settlement then recovers that difference in one final adjustment.
Link Information to make an informed choice
For more helpful information on retail energy contracts, visit the Ontario Energy Board or call toll-free at 1-800-619-6722.