The Ontario Electricity Market Has Incredible Challenges.
Let’s take a look at Ontario’s energy landscape: major industry has grown by 5.72% since 2012, and the population increases by 132,000 every year. The demand for energy goes up; however, no new power plants have been constructed. Further, the provincial government is refurbishing many outdated power plants, such as Darlington with approximately 1,000 megawatts coming offline in 2016.
Rising Energy Costs
REAL energy Protection
You have choice
Pay 2 rates instead of 3,
just like large volume users
Peace of Mind
1 price every month for five years
Hourly Ontario Energy Price (HOEP) and Global Adjustment
Inversely proportional rates; as one goes up, the other goes down.
If you use less than 200,000 kilowatt-hours per year, then you pay three rates and are used to seeing your usage broken out into peak, mid-peak and off-peak time-of-use
categories, with different prices for each. This is called the Regulated Price Plan, or RPP, which is administered by your local utility, and changed semi-annually. Here’s what you’re
paying right now.
Chances are, like most businesses, you are open during regular business hours and paying the highest possible rates. If you are using an equal amount of Peak, Mid Peak, and Off Peak, your average price before any further increases would be approximately 13.3 cents per kilowatt-hour.
Large consumers, such as factories and processing plants, pay 2 rates as opposed to 3. The first is called the Hourly Ontario Energy Price, or HOEP. The second price is called the Global Adjustment or GA price that helps cover other costs of electricity supply in Ontario. The 2 rates are inversely proportional; that is, when one goes up, the other goes down – if HOEP rises, GA falls.
Ontario Wholesale Energy’s HOEP+Plus Product solution gives you direct access to the wholesale cost of electricity for a small administrative fee. "Where an RPP customer pays 3 Prices that average 13.3 c/kwh the Average HOEP + GA for 2015 was 10.2 c/kwh for Large Volume Customers"
HOEP and Global Adjustment
2015 Average 10.2
|Sep 15||Oct 15||Nov 15||Dec 15|
Where an RPP customer pays 3 Prices that average 13.3 c/kwh the Average HOEP + GA for 2015 was 10.2 c/kwh for Large Volume Customers
RPP Comparison to Hourly wholesale
|Contract Start||Contract End||Length in Months||RPP Cost||HOEP+Plus Cost||Cumulative Differential|
In comparing businesses that uses similar amounts of Peak, Mid Peak and Off Peak vs Ontario Wholesales HOEP + Product there has been a positive differential each year
You can pay similar electricity prices as a huge industrial plant
That means that you as a small business can pay similar electricity prices as a huge industrial plant. Let us worry about managing your electricity costs so you can get back to managing your business.
- Consumption and pricing fluxuates.
- * PriceLock is for commodity portion of electricity. Global Adjustment is a separate line item and defined below.
- Global Adjustment Defined
Global Adjustment (GA) covers the cost for providing both adequate generating capacity and conservation programs for Ontario. The GA is calculated based on the difference between the Hourly Ontario Electricity Price (HOEP) and:
- Ontario Power Generation's regulated nuclear and hydro generation
- IESO (including former Ontario Power Authority) contracts with generators and suppliers of conservation
- Contracted rates administered by the Ontario Electricity Financial Corporation paid to existing generators
Natural gas and electricity prices are volatile. They change based on everything from the weather to Wall Street speculation. Because price volatility
normally hurts a small business’s bottom line, Ontario Wholesale Energy Gas & Electric created the PriceLock solution. PriceLock provides Real Energy Protection, offering businesses
one low rate that does not change for five years, regardless of usage, weather and changing market conditions.
PriceLock is the preferred product of thousands of small businesses and offers Real Energy Protection and true Peace of Mind, allowing business owners to focus on running their business while letting Ontario Wholesale Energy focus on managing their natural gas and electricity costs.
PriceLock is one low rate for all seasons and all usage types
– Real Energy Protection for Peace of Mind.