Electricity Cost Breakdown: Where Does Your Money Go?

Local distribution companies are only one link in the complex chain that brings electricity from the generation plant to homes and businesses. And the distribution charge accounts for only a small portion of the total bill.

As you can see, local distribution charges amount to only about 21 cents on the dollar, or 21% of the average monthly residential electricity bill. The local electricity distributor however, is responsible for collecting the other 79% that goes to government fees, taxes and other electricity market participants.

Includes cost of IESO’s running of wholesale market, provincial taxes on delivery charges, cost of service provided by Rural and Remote Rate Protection, Standard Supply Service charge and the provincial charge used to pay down the debt of the former Ontario Hydro

** Provincial Benefit – the difference between the market price of electricity and the set price paid to certain regulated and contracted generators