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There are 77 electricity distribution companies that deliver electricity to individual homes and businesses in Ontario. These companies (referred to as Local Distribution Companies (LDCs) or distributors) recover their costs from consumers through electricity distribution rates, including the costs to:
Costs and rates vary from distributor to distributor depending on factors such as the age and condition of assets, geographic terrain and distance, and population density. The proportion of residential to commercial and industrial consumers can also contribute to cost differences between utilities.
Each year, Local Distribution Companies apply to the Ontario Energy Board requesting changes to their distribution rates
The Ontario Energy Board sets just and reasonable electricity distribution rates. This helps ensure a reliable power supply.
In Ontario, local distribution charges amount to about 23 per cent of the average residential monthly bill based on the use of 800 kilowatt hours of electricity. This amounts to about $26 per month on an average monthly electricity bill of $111, before the Harmonized Sales Tax (HST).