Ontario Power Authority

Ontario Power Authority

September 06, 2005 08:21 ET

New Website Explains Electricity Pricing in Ontario

Ontario Power Authority posts website explanation Attention: Assignment Editor, Business/Financial Editor, City Editor, Energy Editor TORONTO, ONTARIO--(CCNMatthews - Sept. 6, 2005) - The Ontario Power Authority has posted on its website an explanation of the variance account used to track the difference between what low volume and designated consumers pay for electricity and the actual cost of acquiring that electricity. (www.powerauthority.on.ca).

The Regulated Price Plan (RPP) and associated Variance Account were established in April 2005 as a means of ensuring that low volume and designated Ontario consumers begin to pay a price which better reflects the full cost of electrical power. As electricity costs vary with season and demand, lower costs in some months help to offset higher costs experienced at other times. As a result, the consumer experiences more stable and predictable prices.

The Ontario Energy Board is responsible for forecasting costs and setting RPP prices. Further information on how this is done can be found on the OEB's web site at (www.oeb.gov.on.ca). The RPP variance account tracks the differences from forecast costs, both positive and negative, for the rate period set by the OEB, currently running from April of 2005 to May of 2006.

"Even though customers are paying an average price, and the variance account balance is cleared only when new prices are set by the OEB, we are trying to give consumers an impression of the monthly variations and potential implications for their bill as if they were paying a monthly price", said Paul Shervill, Vice President of Retail Services at the Ontario Power Authority. "We feel Ontarians should have a straightforward explanation of real power costs and the RPP variance account. This information on the OPA web site will be updated on a monthly basis."


Contact Information

  • Tim Taylor, Mgr. Media and Public Relations, Ontario Power Authority
    Primary Phone: 416-969-6353
    Secondary Phone: 416-967-7474 ext. 6353
    E-mail: tim.taylor@powerauthority.on.ca