Energy Retailer Contracts in Ontario: Should You Sign a Fixed-Rate Deal?

Energy retailer contracts in Ontario let you buy electricity or natural gas supply from a licensed private company at a contracted price, usually fixed for one to five years, instead of from your utility's standard supply. For most households they cost more than staying on the Regulated Price Plan (RPP) for electricity or Enbridge Gas's standard supply for gas, mainly because the contract price is not the whole cost.

That does not mean every contract is a bad deal, but it does mean you should run the numbers carefully. This guide explains how contracts work, what to compare, the consumer protections that apply and how to get out of a contract you regret.

How do energy retailer contracts work in Ontario?

Retailers (for electricity) and marketers (for gas) are licensed by the Ontario Energy Board (OEB). When you sign with one:

• Your utility still delivers the energy. Your local distribution company (LDC), or Enbridge Gas or EPCOR for gas, keeps maintaining the wires or pipes, reading the meter and responding to outages.
• Usually the utility still sends the bill. The retailer's charges appear as lines on your normal bill, or you may get a separate bill from the retailer.
• Only the supply portion changes. Delivery, transmission, regulatory charges and taxes stay the same as before.

What changes	Electricity contract	Natural gas contract
Energy price	Retailer's contract price replaces RPP prices	Marketer's contract price replaces the Enbridge supply charge
Extra charges	Global adjustment is usually billed separately	Some contracts add fixed monthly fees
Delivery	Unchanged	Unchanged (delivery and transportation still billed by the utility)
Price changes	Fixed for contract term	Fixed for contract term
What you give up	RPP prices, including Time-of-Use and Ultra-Low Overnight options	Enbridge's standard supply price, which is adjusted quarterly

Why electricity contracts often cost more

When you leave the RPP, you stop paying TOU, Ultra-Low Overnight or Tiered prices. Instead you pay:

1. The retailer's contract price per kWh,
2. plus the global adjustment per kWh, which changes monthly and is often several cents per kWh or more,
3. plus normal delivery, regulatory and HST, minus the Ontario Electricity Rebate on eligible accounts.

RPP prices already include the global adjustment. A retail contract price usually does not. That is why an advertised retail price that looks similar to the RPP can end up meaningfully higher.

A quick comparison method

Step	What to do
1	Find your average RPP commodity cost: divide your electricity line by the kWh used over the last few bills
2	Add the retailer's contract price to the global adjustment for recent months, published by the IESO at ieso.ca (opens in a new tab)
3	Add any monthly fees from the contract, divided by your monthly kWh
4	Compare the two per-kWh totals; delivery and regulatory charges are the same either way

For a typical Toronto-area home on TOU in winter, the average RPP commodity cost is about 11.9¢ per kWh (illustrative estimate based on 1 November 2026 prices and a typical usage split). A contract would need to beat that after the global adjustment and fees are added.

Note: On a retail contract you also lose the ability to save by shifting usage to off-peak or overnight hours, because the contract price is typically flat at all hours.

How gas marketer contracts compare

Your Enbridge Gas bill includes several lines: a customer charge, delivery, transportation and gas supply. A gas marketer contract replaces only the gas supply line. Enbridge's standard supply price is set through a regulated quarterly process and passed through without markup.

A fixed gas contract can protect you if market prices spike, but historically fixed retail gas prices in Ontario have often been above the regulated supply price over the length of the contract. Since the federal carbon charge on natural gas was removed effective 1 April 2025, gas bills have been lower overall. Because the supply line is only one part of what you pay, even a large difference in supply price changes the total bill by less than it first appears. Our guide to understanding your gas bill explains each line.

What protections do you have?

Ontario's Energy Consumer Protection Act and OEB rules set out protections for retail energy contracts. Key points, which you should confirm on oeb.ca (opens in a new tab) because rules can change:

• No door-to-door contracts. Retailers and marketers may not sign residential electricity or gas contracts at your door. If someone at the door offers a lower rate, an "upgrade" or asks to see your bill, close the door. See our guide to door-to-door energy scams.
• Price comparison required. Before you sign, the retailer must give you a document comparing its price to the utility's standard supply price.
• Verification and copies. Contracts must be confirmed and you must receive a written copy.
• Cooling-off period. You can cancel without penalty within a set period after receiving your contract copy.
• Renewal requires your consent. A contract should not renew automatically at a new price without your agreement.
• Limits on cancellation fees. Exit fees are regulated and depend on the contract.

Signs to walk away

• Pressure to sign today or "lock in before prices rise"
• Claims to be from your utility, the OEB or the government
• A price quoted without mentioning the global adjustment
• A bundle that combines an energy contract with a furnace, water heater or other equipment rental
• Anyone asking for your account number before you have decided to buy

How do you cancel an energy retailer contract?

1. Find your contract and check the cooling-off period, term and exit fees.
2. Contact the retailer in writing and ask to cancel. Keep a copy.
3. Confirm the return date. Your account should move back to RPP pricing (electricity) or Enbridge standard supply (gas) after the retailer processes the cancellation.
4. Check the next bills. Retailer charges should stop. If they do not, contact your utility.
5. Complain if needed. If a retailer does not respond or you believe rules were broken, you can file a complaint with the OEB.

After you return to the RPP, review whether TOU, ULO or Tiered suits you best. Our electricity price plan calculator can help.

When might a contract make sense?

A fixed contract is mainly about price certainty, not savings. It can make sense for someone who values a predictable supply price over several years and has compared the full cost, including the global adjustment and fees. Most households can get predictability without a contract by using their utility's equal or budget billing plan, which spreads costs evenly across the year at no extra charge.

Frequently asked questions

Will I still get the Ontario Electricity Rebate on a retail contract?

The rebate generally applies to eligible residential accounts regardless of who supplies the electricity. It does not offset the global adjustment added under the contract.

Can a retailer cut off my power?

No. Your utility, not the retailer, controls service. Disconnection rules for non-payment are set by the OEB and apply through your utility.

I moved into a home with a contract. Am I bound by it?

Contracts are with the person who signed them, not the property. If the previous owner's contract appears on your new account, contact your utility and the retailer immediately.

Is an energy contract the same as a water heater or furnace rental?

No. Equipment rentals are separate agreements, often with their own long terms and buyout costs. They are covered by different consumer protection rules.