Understanding Ontario Electricity Prices And How to Save Money Now

 

Right now, it is more likely that you are being served under your utility’s default supply service.  That means your utility supplies and delivers your energy, and sends you the bill each month. According to the Ontario Energy Board, ‘fewer than 1 in 10 customers in Ontario buy their electricity from an electricity retailer.’ You may wonder, why? It’s not because businesses don’t have a choice, it’s not because the utility is binding them to stay, it’s not even because utility prices are low. It is because it is an unknown territory for many, an area that Ontario business owners have not yet explored. This has to do with why business owners and residents alike see that the Ontario electricity prices are so high.

Ontario introduced energy restructuring in 2002. Restructuring is the process by which governments remove, reduce, or simplify restrictions in order to encourage efficiency and competition in markets. Competition drives utilities to push for better energy deals on the open market and improve process efficiencies.

Hypothetically speaking, if Rogers was the only phone company around and they decided to sell you phone plans for a minimum of $100, you would have no other option but to purchase that plan. Now imagine, Telus was another provider that stepped in the market and offered their minimum phone plan for $50. Consumers would storm to Telus seeing a relief in pricing. This would in turn force Rogers to bring their pricing down, and result more reasonable rates across the board.

Ontario’s energy market is currently experiencing a similar situation, as competition is introduced, retailers are offering lower electricity pricing. This benefits the consumer – Ontario businesses.

To dive further into the crux of Ontario’s deregulated energy market, it is important to understand the key players that make up this market:

Generator

They produce the energy used to power your business.

Local Distribution Company (LDC) 

They deliver energy to your business, respond to emergencies, and handle delivery related billing (such as Toronto Hydro, Brampton Hydro, Alectra Utilities etc.).

Supplier/Retailer

Ontario’s energy deregulation brought in competition which opened the market to electricity suppliers/retailers (competition). They purchase electricity on the open market.

Energy Consultant/Broker (That’s us!)

Dream Energy Solutions educates Ontario businesses on electricity deregulation and procure the lowest electricity price. We negotiate on your behalf at absolutely no cost to you so you can enjoy the benefits of deregulation and pocket savings. Our Certified Business Energy Professionals recommend the combination of supplier/retailer, price, term, and facilitate your contract process.

Most importantly, there would be no changes to your distribution and transmission of electricity.  You will also be eligible for utility/government rebate programs, even when you decide to choose another retailer.

Finally, the most important group…

You (The Business Owner)

Now, you are empowered to choose between different suppliers/retailers and the various electricity prices they offer in Ontario. You are no longer bound to stay with your utility (such as Toronto Hydro, Brampton Hydro, Alectra Utilities etc.) for your electricity needs. Looking to shop for an energy plan tailored to your business? Give us a call today at 833-YOUR-NRG (968-7674) or send us an email to info@dreamenergysolutions.ca for a complimentary bill audit.

If you have any questions or concerns, feel free to check our FAQ or leave a comment below.

Our licensed and certified business energy professionals are looking forward to working together with you.

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