2. Understand the cost of the services

Buying 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.

It's important to look at the cost of buying from an energy retailer compared to your local distribution company. The Ontario Energy Board (OEB) 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.

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) and can change every 6 months. This is known as a Regulated Price Plan.

You can find your local distribution company here.

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.

Buying from an energy retailer

Some energy retailers have prices that are set by the Ontario Energy Board (OEB). Their rates can change every 3 months.

But some retailers have prices that are not set by the OEB. This means that the energy retailer changes their rates depending on what your contract says.

Other charges

If you get electricity from an energy retailer, you will still have to pay money to your local distribution company for the delivery of the electricity. An energy retailer can sell the electricity to you, but your local distribution company has to deliver it. Your local distribution company owns the systems that put electricity into your home.

If you get electricity from an energy retailer, you also have to pay them a fee called the Global Adjustment. This fee is charged to everyone who buys electricity in Ontario. 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 them the Global Adjustment fee as well as the price in your contract.