1. Understand the price of the contract

Before you renew or extend your energy contract, you should compare how much it will cost to buy again from the energy retailer and how much you would pay your local distribution company.

You can agree to an energy contract with an energy retailer. Or you can buy your electricity from your local distribution company.

The Ontario Energy Board has a bill calculator that can help you:

compare electricity price plans, and
compare your current electricity bill with a contract offered by an energy retailer.

Choosing to buy electricity from an energy retailer does not always mean you will save money. Sometimes it can cost less to buy from your local distribution company.

Buying from a local distribution company

If you buy electricity directly from your local distribution company, the price is set by the Ontario Energy Board (OEB). The OEB can change the price every 6 months. This is called a Regulated Price Plan.

Distribution companies offer three different types of price plans:

Time of use (TOU): The price of electricity is based on the day of the week and time of day you use it. In this plan, there are periods of the day when electricity is cheaper to use, like the early morning or evening.
Ultra-low overnight: Like the TOU plan, this plan bases the price of electricity on the day of the week and time of day you use it. But you can save more money if you do any activities that use a lot of electricity overnight.
Tiered: The price of electricity is based on how much electricity you use each month. You can use a certain amount of electricity each month at a lower price. Once you go past that limit, a higher price applies.

You can read more about each of these plans on the OEB's website.

You can find your local distribution company here.

Buying from an energy retailer

Some energy retailers have prices that are set by the Ontario Energy Board (OEB).

But some do not. This means that the energy retailer can change their rates depending on what your contract says.

Other charges

If you get electricity from an energy retailer, you will still have to pay your local distribution company to deliver the electricity. This is because an energy retailer can only sell you the electricity, but they cannot deliver it.

If you get electricity from an energy retailer, you must also pay a fee called the Global Adjustment. Everyone who buys electricity in Ontario must pay this fee. When you buy electricity from your local distribution company, this fee is already included in the price. But when you buy from an energy retailer, you have to pay the Global Adjustment fee as well as the price in your contract.