Ontario Electricity FAQ – Common Questions Answered
Updated 2026‑04‑22
This FAQ answers the most common questions Ontarians have about electricity bills, pricing plans, delivery charges, and how the provincial grid works. Each answer is written in plain English with practical examples to help households understand what they are paying for and why bills change from month to month.
1. Why is my electricity bill so high even when I used less?
Many Ontarians are surprised when their bill increases despite lower usage. This usually happens because:
- Delivery charges include fixed components that don’t fall when usage drops
- Global Adjustment can rise or fall independently of your usage
- Billing periods vary (e.g., 33‑day vs 28‑day cycles)
- Seasonal patterns affect heating, cooling, and lighting
In low‑usage months, fixed charges become a larger share of the total, making the bill feel high even when consumption is low.
2. What are delivery charges?
Delivery charges pay for the infrastructure that brings electricity to your home. This includes poles, wires, transformers, substations, maintenance crews, storm repairs, and metering systems. These costs exist whether you use a little electricity or a lot, which is why delivery doesn’t fall much when usage drops.
3. What is the Global Adjustment (GA)?
GA covers province‑wide electricity system costs such as long‑term contracts, conservation programs, and reliability initiatives. It does not track your personal usage directly. GA can rise or fall even when your own consumption stays the same.
4. What is the difference between TOU, Tiered, and ULO pricing?
- Time‑of‑Use (TOU): prices vary by time of day (off‑peak, mid‑peak, on‑peak)
- Tiered: one price for the first block of usage, a higher price after the threshold
- Ultra‑Low Overnight (ULO): extremely low overnight price, higher daytime prices
Households with EVs, electric heating, or flexible schedules often benefit from ULO or TOU. Homes with steady daytime usage may prefer Tiered.
5. Why do electricity prices change seasonally?
Seasonal weather affects electricity demand:
- Winter: heating and lighting increase usage
- Summer: air conditioning increases usage
- Spring/Fall: mild weather reduces usage
Higher demand can influence wholesale prices and system costs, which flow into GA and other bill components.
6. Why do delivery charges vary between utilities?
Delivery rates differ because each utility has different:
- geography (rural vs urban)
- customer density
- infrastructure age
- storm exposure
- maintenance requirements
Rural utilities often have higher delivery charges because they maintain more infrastructure per customer.
7. How does electricity get to my home?
Ontario’s electricity system has three main layers:
- Generation: nuclear, hydro, wind, solar, natural gas
- Transmission: high‑voltage lines move power across the province
- Distribution: local utilities deliver electricity to homes and businesses
Delivery charges fund the distribution layer — the part closest to your home.
8. How can I reduce my electricity bill?
You can’t eliminate delivery or GA, but you can reduce your total bill by:
- shifting usage to off‑peak or ULO hours
- reducing heating and cooling loads
- improving insulation and air sealing
- using high‑efficiency appliances
- checking for estimated meter readings
Small behavioural changes often save more than people expect.
9. Why do two similar homes have different bills?
Even with similar usage, bills can differ because of:
- different utilities (delivery rates vary)
- different pricing plans (TOU vs Tiered vs ULO)
- different usage patterns (peak vs off‑peak)
- different heating systems (electric vs gas)
10. Where can I find official electricity rates?
Official rates are published by the Ontario Energy Board (OEB). Your local utility also provides rate information on your bill and website.